US debt tops GDP for first time since WWII

US national debt has surpassed the country's GDP for the first time since the end of World War II, official data released Thursday showed.

The national debt — defined as debt held by the public excluding intragovernmental holdings — reached $31.27 trillion at the end of March, exceeding nominal GDP, which was estimated at around $31.22 trillion during the same period.

As a result, the debt-to-GDP ratio is nearing the record level of 106% recorded in 1946 during the post-World War II demobilization period.

According to projections from the Congressional Budget Office, the ratio is expected to exceed that record in 2030, reaching 108%, with forecasts pointing to 120% within the next decade.

The office warned that debt growing faster than the economy could slow economic growth, crowd out private investments, and increase debt servicing costs.

Commenting to Fox Business, Maya MacGuineas said the surge in debt was not caused by a major global conflict, but rather by bipartisan inaction, warning that continued debt growth would undermine prosperity for both current and future generations through higher interest rates and inflationary pressures.