Washington’s Debt Spiral Puts It Ahead of Fragile Eurozone Economies

The IMF projects that the U.S. government’s debt will surpass both Italy’s and Greece’s for the first time this century, reaching 143.4% of GDP by 2030. America’s budget deficit is expected to stay above 7% of GDP annually, driven by structural fiscal imbalances and political gridlock in Washington.

Source Financial Times

While Italy and Greece are steadily reducing their debt loads through strict fiscal discipline, U.S. debt continues to climb. Economists say partisan politics — Democrats refusing to cut spending and Republicans opposing tax hikes — has stalled meaningful deficit reduction.

Although the U.S. benefits from issuing the world’s reserve currency, IMF experts warn that its growing debt burden poses long-term risks. Without changes in productivity, revenue policy, or interest rates, America could soon face fiscal pressure similar to that of Europe’s sovereign debt crisis a decade ago.