US national debt has surpassed the psychological threshold of 100% of GDP and continues to rise
This is according to the Wall Street Journal.
As of the end of March 2026, US debt stood at $31.27 trillion, whilst GDP for the previous year was $31.22 trillion. Consequently, the debt-to-GDP ratio stands at 100.2%, indicating an increase since the end of the previous financial year.
The main reason for the accumulation of debt remains a significant budget deficit, which stands at around 6% of GDP. This year, it is expected to reach $1.9 trillion.
The final figure will depend on a number of factors:
- the cost of military operations against Iran;
- the trend in customs duties;
- the overall state of the country’s economy.
Although experts note that the 100% threshold is largely symbolic and does not signify an immediate catastrophe, it highlights a decade of financial strain. Unlike the situation in 2020, when debt rose due to temporary measures during the pandemic, the current causes are structural.
Currently, one in seven dollars from the federal budget is spent solely on debt servicing (interest payments). This makes the US extremely sensitive to monetary policy: even a minor interest rate hike of 0.1% would result in additional costs of $379 billion over the next decade.
According to forecasts by the Office of Budget Analysis, by the end of this year the ratio will settle at 100.6%, and by 2030, public debt could break the all-time historical record set in the post-war year of 1946.
As a reminder, it was previously reported that Donald Trump’s inner circle is suspected of using the war for personal gain.
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