Washington: The United States is heading into a financial moment unlike any seen in the last 100 years. The country’s debt load keeps rising to record levels. It has already exceeded $38 trillion in 2025. The International Monetary Fund (IMF) has warned that America is now moving toward a position that once triggered global concern for other advanced economies.
According to IMF projections, US general government gross debt will hit 143.4% of GDP by 2035, up from 123% in 2024. That level will exceed Italy’s 137% and Greece’s 130%, two countries long seen as symbols of high public debt.
Economists say this shift is likely to bring a major change in the global financial balance.
The United States is spending more money each year while revenue growth remains weak. Federal interest costs are rising faster than any other part of the budget. Interest payments already surpass the government’s spending on transportation and education combined.
Analysts estimate that every 1% increase in average interest rates adds about $380 billion to the nation’s annual borrowing bill.
The IMF expects US budget deficits to remain above 7% of GDP every year through 2035. No other major economy faces such a long stretch of deep deficits. The surge comes from expensive tax policies, ballooning retirement and healthcare obligations, expanding defense budgets and higher borrowing costs due to the Federal Reserve’s rate hikes.
In Europe, Italy and Greece are gradually stabilising their finances after years of painful reforms. Italy’s debt load is expected to hover near 137%. Greece’s debt is projected to fall toward 130.2% by 2030. The IMF says that the United States is heading in the opposite direction, developing deeper imbalances even as its economic growth slows.
Experts warn that America’s debt path could limit Washington’s response to future recessions, climate disasters or wars. High debt reduces fiscal flexibility. It diverts funds away from infrastructure, education and national security as interest costs consume more of the federal budget.
More than 80% of US government debt will mature within the next decade. The constant rollover adds pressure as markets demand higher returns for long-term Treasuries. The Congressional Budget Office forecasts that interest payments could reach nearly $1.8 trillion a year by 2035.
The United States still benefits from the dollar’s global dominance and the strength of its financial markets. But the IMF cautions that these advantages cannot be assumed forever. Credibility depends on responsible fiscal management.
The national debt continues climbing, increasing by $2.18 trillion in the past year alone. The IMF describes the current trajectory as “uncharted territory” for the world’s largest economy. Fiscal experts say meaningful action requires spending reforms, smarter taxation and long-term growth planning.
America’s debt crisis is no longer a distant prediction. It is unfolding now. The moment when US debt overtakes Italy and Greece will mark a symbolic turning point. And if Washington fails to shift direction soon, that milestone could become the start of a far more dangerous era for the US economy.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
