The Congressional Budget Office (CBO) on Wednesday estimated that the federal budget deficit would reach $ 3.3 trillion in the fiscal year ending this month – more than three times the 2019 deficit.
Why it matters: It will be 16% of GDP, the largest amount since the end of World War II in 1945. The national debt is expected to grow by more than 100% of GDP in 2021 and 107% in 2023 – “the highest level in the nation’s history,” notes the Central Bank of Oman.
News Leadership: The Central Bank of Oman has mostly caused the economic disruption caused by the epidemic of coronavirus virus and “legislation enacted in response”.
Federal spending has jumped to 32% of GDP this fiscal year, as Congress has spent trillions of dollars on relief from coronavirus to curb the spread of the virus, which has killed more than 185,700 people so far and More than 6.1 million infected in the United States.
The negotiations for the next stimulus package faltered, leaving tens of thousands of Americans without work.
Felix Salmon of our intellectual bubble, Axios: The US government can borrow at less than inflation, with markets indicating that it is encouraging more government spending, more borrowing, and higher debt.
The Treasury will always be able to pay back this loan, as it borrows in dollars and can print as many of that debt as it wants.
Note: Losses could have been worse. The Central Bank of Oman had forecast in April that it would increase to $ 3.7 trillion.