Capital Economy, Business and Finance
The US budget deficit is widening and will jump to an unprecedented $1.915 trillion for fiscal 2024, the Congressional Budget Office (CBO) says. That’s $408 billion more than projected earlier because of Joe Biden’s student loan forgiveness plans, military aid to Ukraine, Israel and Taiwan, estimated Medicaid spending and higher Federal Deposit Insurance Corp costs to resolve bank failures. Debt service costs are also up, leading to more borrowing, which one think tanker calls “the definition of unsustainable”. At the same time, immigration boosted the economy, the CBO says. A projected increase of 8.7 million U.S. residents between 2021 and 2026 sets a trend that would increase GDP by a cumulative total of $8.9 trillion over the next decade – something to be noted on both sides of the immigration debate across the Atlantic.
This article was amended since publication.
