Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
U.S. budget deficit to reach record highs
Economy

The U.S. budget deficit: a forecast from the Congressional Budget Office

03.11.2021
2 min read

U.S. budget deficit to reach record highs

The Congressional Budget Office published a preliminary report for the current fiscal year. According to the document, the US budget deficit will be about 2.258 trillion dollars. This situation is due to the losses that accompanied the last year. As a result, part of the funds went to the restoration of various sectors, and the pace of development in general slowed down. In 2020 the figure was $3.132 trillion.
The country’s GDP will be at the level of 10.3%, a year earlier this value was fixed at 14.9%. Experts say that such a decline in the U.S. economy can only be compared with indicators after World War II.
Analysts also gave a forecast for the period from 2022 to 2031. According to them, the deficit will be kept at $1.2 trillion. This figure would exceed the 50-year GDP average of 3.3 percent. By 2031, the budget deficit will reach 5.7% of GDP.
As for the U.S. federal debt, this year it reached a value of 102% of GDP. In the previous period the figure was 100%. According to forecasts, by 2031 it will grow to 107% of GDP, which will be considered a record high for the country.

U.S. budget
In making the forecast, experts did not take into account the plan that was recently formalized by President Biden. It involves the introduction of programs to stimulate the economy of $1.9 trillion. Which segments of the economy the funds will go to is still unknown, but such an infusion could have a significant impact on the current processes.
The country’s deficit is growing as a result, among other things, of government actions that allocate huge sums to support businesses and the population. The pandemic has caused record damage to households and businesses, and unemployment has risen, requiring an increase in benefits. U.S. budget revenues continue to decline, dropping nearly 28% last month. At the same time, spending is rising, most of it related to the Paycheck Protection Program. It will allow small businesses to get their salaries paid. Analysts say that since the beginning of the year, spending increased by 49% to more than $5 trillion.
For comparison, during the financial crisis in 2009, the deficit reached $1.413 trillion, or 9.8% of GDP. The maximum falls were recorded in 1943 – 27% of GDP, and in 1943-1945 – up to 20% of GDP. And the negative balance has been increasing for 5 years, which is the longest period since the 1980s.

Tags: Global Economy
0
Previous Post Harland David Sanders: the face of the KFC fast food chain Next Post Investments in UIFs are increasing in the Russian market

You Might Also Like

record growth
Economy
Germany reported record economic growth in Q3 2020
05.08.2021
The world's largest oil company Saudi Aramco
Economy
Saudi Aramco plans to cooperate with Russian energy companies
29.10.2021
U.S. Mint
Economy
The U.S. Mint encourages people to pay more in cash
17.04.2021
German government
Economy
German government adopted a new budget, taking into account the national debt
13.12.2021
The UAE economy
Economy
The UAE economy has become the first in the Arab region
11.09.2022
Russian GDP growth
Economy
What GDP growth Russia showed in 2019: overview of the Ministry of Economic Development data
13.11.2020

Recent Posts

  • 1Apple Search
    Apple Corporation is working on its own search engine, Apple Search
    28.01.2023
  • 2Tom Ford brand
    Estee Lauder made a deal to buy the fashion brand Tom Ford
    27.01.2023
  • 3Golden Visa
    The Golden Visa program has brought Portugal more than 6 billion euros during its existence
    26.01.2023
  • 4Michael Steinhardt
    Michael Steinhardt: the story of a prominent American investor
    25.01.2023
  • 5Cessna
    The Cessna aircraft company: how it all began
    24.01.2023

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
  • Cryptocurrency market: the future of the segment in 2020

Social media

Editor's Picks

Chaslau Koniukh
Analytics

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

Press
17.08.2020
Expert Chaslau Koniukh
Analytics

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

Press
18.06.2020
expert Chaslau Koniukh
Analytics

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

Press
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

Press
16.05.2020

Latest Posts

Bybit
Cryptocurrency exchange Bybit provided information about the volume of stored assets
29.01.2023
Apple Search
Apple Corporation is working on its own search engine, Apple Search
28.01.2023
Tom Ford brand
Estee Lauder made a deal to buy the fashion brand Tom Ford
27.01.2023

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
  • Cryptocurrency market: the future of the segment in 2020
  • Algorithmic trading as a tool for stock market operations
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