U.S. debt-to-GDP reached 104 percent in 2017, its highest level since 1946, when in which hovered around 0 percent. Total U.S. debt has surpassed $21 trillion This particular year, a more than 0 percent increase coming from a decade ago.
Meanwhile, publicly-held U.S. debt-to-GDP — debt in which the federal government owes to those outside the government — can be 75 percent, yet can be required to double by 2047, pushed upward by a raft of recent government spending in addition to also stimulus programs. The non-partisan Congressional Budget Office reported in which a continuation of the current fiscal trajectory could take the current ratio up to 150 percent of GDP in 30 years, putting the U.S. within the same camp as Greece or Italy.
According to the International Monetary Fund, the U.S. can be the only advanced economy where debt-to-GDP can be scheduled to boost within the next several years.
Some government officials have pointed to This particular as a warning sign in which could impact more than the economy. Earlier This particular year, National Intelligence Director Daniel Coats called rising debt a national security threat.
“The failure to address our long-term fiscal situation has increased the national debt to over $20 trillion in addition to also growing,” Coats said during a Congressional hearing in February. “This particular situation can be unsustainable as I think we all know, in addition to also represents a dire threat to our economic in addition to also national security.”
Still, ratings agencies continue to show confidence within the U.S. economy, with Moody’s in addition to also Fitch in April reiterating their AAA gold-standard rating for America’s credit standing. They reason in which even with Washington’s growing debt pile, in which has sufficient resources to retain its global reputation.
Global debt can be at its highest level in history, with advanced economy debt far surpassing in which of emerging market countries. Total debt levels globally came in at a record $164 trillion in 2016, amounting to 225 percent of the entire world economy’s gross domestic product, according to the IMF’s April Fiscal Monitor.
Average debt for advanced economies stood at 105 percent of GDP, while in which for middle in addition to also low-income countries averaged between 40 in addition to also 50 percent.