US Debt Hits 100% of GDP First Time Since WWII, CBO Warns 120% by 2036

The US debt-to-GDP ratio has crossed a level not seen in decades. Recent data shows government borrowing has now exceeded the size of the economy. This milestone was last recorded in the aftermath of World War II. While the number itself stands out, what is behind it is drawing equal attention. Economists say the shift shows years of rising deficits and policy decisions rather than a single crisis event.

Also Read: Apple Hits $111B Record on iPhone and MacBook Demand, Memory Costs Loom

$31.27T Debt vs $31.22T GDP Marks 100.2%, Nearing 1946 Record of 106%

Debt held by the public reached $31.27 trillion as of March 31. Meanwhile, GDP for the previous 12 months stood at $31.22 trillion, according to data from the Bureau of Economic Analysis. This puts the US debt-to-GDP ratio at 100.2%. The first time it has crossed 100% since 1946, when it peaked at 106%.

The current situation differs from that period. The earlier spike followed large-scale wartime spending. Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget (CRFB), said,

“This time, the borrowing isn’t borne from a seismic global conflict, but rather a total bipartisan abdication of making hard choices.”

Now, the increase is linked to persistent borrowing and a widening federal budget deficit. The government is projected to run a deficit of around $1.8 trillion in fiscal 2025. This continues a pattern where spending exceeds revenue.

Also Read: XRP Tokenized Treasuries Hit $418M, Up 8x as Rakuten Adds 5M Merchants

Projections Show Further Rise Ahead

The Congressional Budget Office expects debt levels to keep climbing. Under current estimates, debt held by the public could reach 108% of GDP by 2030 and 120% by 2036. Economists generally track this measure to assess long-term sustainability. This is because it reflects how large the debt burden is relative to economic output. MacGuineas further noted,

“The higher we allow our debt to grow, the more we erode our own prosperity and that of future generations. Rising debt compromises affordability by slowing income growth, pushing up interest rates, and increasing inflationary pressures. Debt squeezes our budgets with massive interest costs.”

Total gross debt has already crossed $39 trillion or about $114,000 per person. Analysts note that debt is now about twice its historical average.

The national debt crisis has also brought renewed focus to policy decisions in Washington. While the debt ceiling continues to be debated periodically, it does not directly address the imbalance between spending and revenue.

Also Read: Anthropic Jumps to $900B Valuation Above OpenAI’s $852B as Cyber Race Heats Up