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Five charts explaining America’s $40 trillion debt
Euronews.com • • general
Key Points:
- The US gross national debt has reached $40 trillion for the first time, driven by persistent budget deficits and rising interest costs, which now exceed $1 trillion annually.
- Although the US holds the largest nominal debt globally, its debt-to-GDP ratio, projected to reach 125.8% by 2026, reflects a growing fiscal burden relative to its economic output.
- The $40 trillion includes both debt held by the public—over $32 trillion—and intragovernmental debt, with about 76% of federal debt held domestically and 24.1% by foreign investors.
- The government continues to borrow due to a substantial budget deficit, projected at $1.9 trillion in 2026, with major expenditures including Social Security, healthcare, defense, and interest payments.
- The Congressional Budget Office warns that without fiscal consolidation, US debt could rise to $64 trillion by 2036, increasing borrowing costs and fiscal risks, prompting calls for urgent measures to reduce deficits and stabilize debt.
