Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
growth of the government debt
Economy

Analysts predict that the U.S. government debt will double by 2050

27.05.2021
2 min read

How U.S. government debt growth can play into Europe’s hands

The other day, the U.S. Congressional Directorate for Budget Affairs made a report. According to the document, the government debt is expected to double by 2050. Now the GDP is 98%, and in 30 years it may reach 195%.
Before that, analysts made a forecast in January last year, then the figure was 180%. However, many global events took place in 2020, the most large-scale of which is the pandemic and crisis. The USA, like many countries, had to change its monetary policy, and accordingly, the forecast had to be revised.
Experts also drew attention to the fact that this year the government debt will reach 100%, which is due to the budget deficit. In 2022 the figure will rise to the level of 107%, and it will be the highest value in the history of the country.
In the report, analysts note that the government debt is growing at a high rate, and it is an alarming sign for the country. Such dynamics force banks to raise rates on loans, which slows down the pace of economic development. The risk of crisis onset and decrease of investors’ activity is also increasing. Moreover, the budget deficit continues to grow even after the end of the pandemic, and if the situation does not improve, it will reach 13% of GDP by 2050.

growth of the government debt

It should be noted that in this case Europe can win. The EU countries have less government debt. Investors who are afraid to invest in large projects in the U.S., may pay attention to the market of the region. First of all, it concerns those individuals and companies that invest in treasury bonds. Despite the fact that such an instrument is considered reliable, due to processes in the U.S., some investors will not take risks.
The large sums that the U.S. government spent on fighting the pandemic have increased the country’s spending, and debt is growing much more intensively here than in the EU countries. Therefore, many buyers prefer to buy European securities. And the authorities promote the inflow of capital by offering favorable interest rates. For example, you can already borrow in euros at lower interest rates than in dollars.
Experts have assessed the state of the European economy, and concluded that the risk of crisis is minimal. The EU government managed to achieve such results due to timely implemented measures to support the markets of the participating countries. For this purpose, the European Union has issued additional bonds worth 750 billion euros, in addition, the ECB has a program to purchase government and corporate bonds.
Experts do not deny that in the near future, the balance of power in the world will change, and Europe will become a leader, displacing the United States.

Tags: Global Economy
0
Previous Post Genius financial fraudster Bernard Madoff Next Post ASM Pacific Technology Ltd wants to leave the stock exchange in Hong Kong

You Might Also Like

India's GDP growth
Economy
India’s GDP growth reached a minimum: reasons for the country’s economic slowdown
09.09.2020
Countries with different economies
Economy
How countries with different economies live: overview of Germany
21.06.2020
oil price of $100
Economy
Will oil cost $100 per barrel: forecast
26.07.2020
pound has fallen
Economy
Why the pound has fallen in the UK: the consequences of the Brexit procedure
10.08.2020
U.S. budget deficit to reach record highs
Economy
The U.S. budget deficit: a forecast from the Congressional Budget Office
03.11.2021
German government
Economy
German government adopted a new budget, taking into account the national debt
13.12.2021

Recent Posts

  • 1New home sales in the U.S.-1
    New home sales in the U.S. are falling: the reasons for the decline
    01.07.2022
  • 2billionaire John DeJoria
    John DeJoria: from a homeless man to a billionaire
    30.06.2022
  • 3DoorDash
    How DoorDash food delivery service succeeded in the U.S. market
    29.06.2022
  • 4Performance marketing-1
    What you need to know about performance marketing: its trends
    28.06.2022
  • 5Counterparty risk definition
    Counterparty risk: when it is important to measure its level
    27.06.2022

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • How China’s economic recovery is going: a review of the processes

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

crypto industry has seen an increase in cybercrime
The Crypto industry records record growth in cybercrimes
02.07.2022
New home sales in the U.S.-1
New home sales in the U.S. are falling: the reasons for the decline
01.07.2022
billionaire John DeJoria
John DeJoria: from a homeless man to a billionaire
30.06.2022

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • How China’s economic recovery is going: a review of the processes
  • Swing trading: essence of the strategy and its benefits
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics