$ 900 billion US budget deficit estimated in 2019
The U.S. Capitol is shown after the U.S. government reopened with about 800,000 federal workers returning after a 35-day shutdown in Washington, U.S., January 28, 2019. REUTERS/Joshua Roberts - RC1D57177FB0
The US budget deficit is expected to rise to $ 900 billion, equivalent to 4.2 percent of GDP in 2019, a report from the US Congressional Budget Office predicted Tuesday.
The Treasury Department is moving to issue long-term debt instruments worth $ 1 trillion to fund the growing budget deficit in 2019.
In 2018, the US budget deficit, the highest level in six years, reached $ 780 billion.
The budget office report estimated the US budget deficit to rise to 4.7 percent of GDP by 2029.
With regard to US debt, the report predicted a rise to $ 16.6 trillion at the end of 2019, equivalent to 78 percent of GDP.
By 2029, US federal debt is expected to raise to $ 28.7 trillion, representing 93 percent of GDP, the highest level since World War II (1938-1945).
US debt is expected to continue rising, after 2029, to 150 percent of GDP by 2049.
More recently, the International Monetary Fund predicted that the US economic growth rate will fall to 2 percent in 2019 from 2.3 percent in 2018 and continue to decline to 1.7 percent in 2020.
