5 days ago
7
America’s national debt has grown by $2 trillion in less than a year, the latest data show
America’s national debt has surpassed $36 trillion for the first time in its history, the US Debt Clock – a website monitoring the nation’s finances in real time – reported on Friday.
In total, the US national debt grew by nearly 6% between January and November, increasing by $1 trillion in less than four months. In late July, the US Treasury announced that it had surpassed $35 trillion.
The debt accumulation speed appears to be growing as it amounted to $34 trillion in early January and then grew by $1 trillion in less than six months. The US Treasury has not officially confirmed the new data yet.
In August, the Congressional Budget Office said in its report that it expected the debt to reach a record of over 106% of GDP by 2027 and eventually rise to 122% by 2034.
The International Monetary Fund (IMF) painted an even grimmer picture in its US economic outlook report in July. “Under current policies, the general government debt is expected to rise steadily and exceed 140% of GDP by 2032,” it said at that time.
The International Monetary Fund warned in July that “high fiscal deficits and the ongoing increase in the US public debt to GDP ratio pose risks not only for the US but also the global economy” and stressed “the pressing need for a frontloaded fiscal adjustment.”
Tech billionaire Elon Musk, whom President-elect Donald Trump recently tasked with finding ways to boost the government’s efficiency, has warned that the US was at risk of defaulting on its debt.
“The interest on the debt is trending to rapidly absorb all tax revenue, leaving nothing for critical needs,” he wrote on X last month. Еhe Tesla and SpaceX CEO has said that the US could find itself in a situation where “the only thing we’ll be able to pay is interest,” if debt keeps growing at a similar pace.
