US National Debt Tops Economy for First Time Since WWII
At the end of March, the US national debt reached 100.2% of GDP, rising to $31.27 trillion against an annual GDP of $31.22 trillion. This marks the first time since the post–World War II era that debt has eclipsed the size of the economy. Experts cite soaring budget deficits, higher tariffs, and weaker immigration inflows as the main drivers. The government now spends $1.33 for every dollar it collects, with this year’s deficit projected at $1.9 trillion. Projections from the Congressional Budget Office indicate that public debt could climb to 108% of GDP by 2030 and 120% by 2036 without policy changes. Analysts warn unchecked borrowing may slow income growth, push up interest rates, and heighten inflationary pressures. With debt surpassing $39 trillion, US leaders face mounting pressure to rein in borrowing and restore fiscal sustainability. The debate now centers on which corrective actions can guide the economy back toward a healthier trajectory.
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