U.S. Congressional Budget Office Forecasts U.S. Public Debt At 181% Of GDP In 2053 Vs 98% In 2023; Projects Slightly Lower Long-term Debt-to-gdp Ratio Than In February 2023 And July 2022, Due To Spending Caps Enacted In Debt Ceiling Deal
Portfolio Pulse from Happy Mohamed
The U.S. Congressional Budget Office (CBO) has projected that the U.S. public debt will rise to 181% of GDP in 2053, up from 98% in 2023. This is a slightly lower long-term debt-to-GDP ratio than was projected in February 2023 and July 2022, due to spending caps enacted in the debt ceiling deal.
June 28, 2023 | 6:01 pm
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NEGATIVE IMPACT
The projected increase in U.S. public debt could impact the SPY ETF, which tracks the S&P 500 index. Higher debt levels may lead to increased borrowing costs and potential economic instability, which could negatively affect the stock market.
The SPY ETF tracks the S&P 500 index, which is a broad representation of the U.S. stock market. As such, any major changes in the U.S. economy, such as a significant increase in public debt, could have a direct impact on the performance of the ETF. Higher debt levels can lead to increased borrowing costs and potential economic instability, which could negatively affect the stock market and, by extension, the SPY ETF.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75