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The outlook for US government debt

- "US net debt has risen fast during the recent recession, to more than 60% of GDP from 36% in 2007. Compared with other OECD countries however, this level is not alarming. Rather, it is the outlook for US debt over the next decade and beyond that is worrying." 
- "Under the President’s current budget proposal the budget will be in continuing deficit throughout the next decade. This will push net debt to 90% of GDP by 2020. Additional fiscal tightening is thus needed to stabilise debt." 
- "The scope for additional fiscal tightening is limited in the short term and largest beyond 2014. A broadly growth-neutral fiscal policy from 2014 onwards would be enough to bring net debt to 60% of GDP by 2020."



DenDanske Research 20100913

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