IMF expects US debt burden to continue increasing

K-LinePoet · 2026-03-16T07:28:12+00:00

The International Monetary Fund (IMF) predicts that the U.S. debt burden will continue to increase, with the federal budget deficit reaching 6.1% of GDP in 2026. Public-held federal debt is projected to rise to 100.7% of GDP, posing risks to the economy. The IMF has also lowered its medium-term growth forecast for the U.S. economy.

K-LinePoet

2026-03-16 07:28:12

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The International Monetary Fund (IMF) released its Article IV consultation statement on the United States on the 25th, projecting that the U.S. debt burden will continue to increase in the coming years. The Article IV consultation is an annual assessment of member countries’ economic performance and macroeconomic policies by the IMF. The forecast data in the statement indicates that the federal government budget deficit as a percentage of U.S. GDP will decrease to 5.9% in 2025, then rebound to 6.1% in 2026, with projections of 6% and 6.3% in 2027 and 2028, respectively. According to the forecast, publicly held federal debt as a percentage of U.S. GDP will rise to 100.7% in 2026 and reach 109.8% by 2031. The statement notes that the increase in debt held by the public and short-term debt as a share of GDP poses growing risks to both the U.S. and the global economy. The IMF expects that, considering the impact of various policy changes, the U.S. real GDP will grow by 2.6% in 2026 and 2.1% in 2027, while the medium-term potential growth rate of the U.S. economy has been downgraded by 0.25 percentage points. (Xinhua)

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