INVC NEWS
Washington : The America, the country with the world’s largest economy, is in danger of becoming a defaulter. The country’s debt-to-GDP ratio has reached 124 percent. Since 1800, the debt-to-GDP ratio of 52 countries has exceeded 130 percent. In this, 51 countries had become defaulters. Due to this, concern is being expressed over the rapidly increasing debt in America also. Experts say that there is no danger of America becoming a defaulter in the near term, but if this situation is ignored then it can have serious long-term consequences. The country’s debt has reached above 34 trillion dollars. The situation has become such that this year America may have to pay more than one trillion dollars in interest.
America’s debt has increased six times in the last 24 years. In the year 2000, America had a debt of 5.7 trillion dollars, which has now reached above 34 trillion dollars. It was $12.3 trillion in 2010 and $23.2 trillion in 2020. According to the budget documents of the US Congress, the country’s debt is estimated to reach $54 trillion by the next decade. In the last three months alone, it has increased by more than one trillion dollars and it is about 124 percent of the country’s GDP. In the last three years alone, the country’s debt has increased by more than $10 trillion. America has to spend 1.8 billion dollars every day in interest payments. It is clear that the government’s earnings are decreasing and expenditure has increased.
It is believed that America’s debt-to-GDP ratio may reach 200 percent in the next few years. Meaning the country’s debt will reach double the GDP. If this happens, then America’s economy will collapse as soon as the debt is repaid. America’s debt is increasing at a time when the country’s economy is in good condition and unemployment is low. If we talk about the highest debt-to-GDP ratio in the world, then Japan is at number one in this matter. The debt-to-GDP ratio there is 269 percent. European country Greece is at second place. Its debt-to-GDP ratio is 197 percent. It is followed by Singapore (165 percent) and Italy (135 percent). Portugal, France, Spain and Belgium are among the countries whose debt-to-GDP ratio is more than 100 percent. That means the debt of these countries is more than their GDP.
