US Goverment Deficit Forecast
The CBO has raised the US government's deficit forecast for Fiscal Year 2024 from $1.5 trillion to $1.9 trillion, or 6.7% of GDP.
This would be the highest deficit since 2021 when the deficit hit $2.8 trillion in response to pandemic lockdowns.
By 2034, the deficit is expected to reach $2.9 trillion or 6.9% of GDP, totaling a whopping $22.1 trillion over the 2025-2034 period.
The CBO projection also assumes that net interest will reflect over 50% of the budget deficit over the next decade.
These numbers all assume no recessions and lower interest rates.
What happens if rate cuts are delayed and a recession hits?
This would be the highest deficit since 2021 when the deficit hit $2.8 trillion in response to pandemic lockdowns.
By 2034, the deficit is expected to reach $2.9 trillion or 6.9% of GDP, totaling a whopping $22.1 trillion over the 2025-2034 period.
The CBO projection also assumes that net interest will reflect over 50% of the budget deficit over the next decade.
These numbers all assume no recessions and lower interest rates.
What happens if rate cuts are delayed and a recession hits?
![US Goverment Deficit Forecast](https://sgsnsimg.moomoo.com/sns_client_feed/102728403/20240625/d6df108efe8996e199a11cebc1f14a03.jpg/big?area=101&is_public=true)
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JonSnow : good ground for a crack up