US Heading to Fiscal ‘Train Wreck’ in 2025 Due to Large Debt, Spending Surges – Ex-World Bank Head
Sputnik International
Published: 2024-05-13T15:52+0000
Category: Americas, US, IMF, US debt, US debt ceiling crisis, external debt, International Monetary Fund, US government, US economy, debt to GDP ratio
Former World Bank President David Malpass warns that the US might face a fiscal “train wreck” in 2025 due to its large debt and excessive spending.
Malpass expressed concerns that the US government’s debt limit triggering, surging spending, and tax rate increases could lead to a crisis. The economy suffers from a lack of new investments amidst a surge in public spending, resulting in an unprecedented debt-to-GDP ratio. The IMF projects the US public debt to exceed 123% of GDP in 2024 and nearly 134% in 2029.
The current US debt stands at over $34.5 trillion, exacerbating the ongoing financial challenges. Malpass emphasizes the need for immediate corrective actions to avoid a looming economic disaster.
Source: Sputnik International