U.S. government spending is forecasted to reach 24.2% of GDP in 2024, well above the 39-year average of 21.1%, according to the CBO. Meanwhile, revenues are expected to be 17.6% of GDP, only 0.4 percentage points higher than the 1984-2023 average.

https://preview.redd.it/nyvy7u0h5mjd1.png?width=809&format=png&auto=webp&s=d47adb8f0613ac56861e51903058008551fd6107

This will push the U.S. deficit to an estimated 6.6% of GDP, nearly double the 39-year average.

In nominal terms, the deficit is projected to hit $1.9 trillion in 2024, the highest since 2021, when it reached $2.8 trillion due to the pandemic response.

With government spending increasing rapidly relative to GDP and revenue growth lagging, multi-trillion-dollar deficits are becoming the new normal.

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