The IMF’s projection that US general government gross debt will hit 143.4% of GDP by 2035, surpassing Italy (137%) and Greece (130%), marks a dramatic reversal of historical fiscal positions.
This highlights the growing concern over the US’s record spending, widening deficits, and surging interest payments.
The comparison is particularly striking because Greece’s high debt-to-GDP ratio has historically been the central issue of its decade-long economic crisis. However, while the US debt ratio is projected to rise steadily, Greece’s is expected to continue its firm downward trend due to intense fiscal consolidation efforts and economic recovery.
The US, once a model of fiscal stability, now faces a debt path that economists say is unsustainable without major policy changes. The US national debt has already crossed $38 trillion, a record high, as interest costs and spending outpace revenues at every level of government.
Amid tax cuts for high earners, the US is expected to run annual budget deficits exceeding 7% over the next five years. President Trump increased US government spending and cut federal taxes in the “big, beautiful bill,” passed by Congress in the summer, forcing the White House to rely more heavily on borrowing to fund annual spending.
Related: Greece’s Budget Forecasts 2.4% Growth, Debt Reduction
