The Congressional Budget Office has predicted $1.4 trillion in federal budget deficit in 2023 and expects federal debt held by the public to increase from the current 98 percent of gross domestic product to 118 percent of GDP over the next decade.
CBO said it expects outlays to rise from 23.7 percent of GDP in 2023 to 24.9 percent in 2033, driven by rising interest costs and an increase in spending on Social Security and Medicare.
Revenues are expected to decrease to 18.3 percent of GDP in 2023 and fall to 17.4 percent over the next couple of years. In 2025, revenues will begin to increase to 18.1 percent of GDP, which is expected to be reached by 2033.
According to the agency, inflation is anticipated to decrease in 2023 and continue this trend through 2027. The inflation rate is projected to maintain the Federal Reserve’s extended goal of 2 percent.
The report states that CBO projects that the unemployment rate will rise to 5.1 percent at the end of 2023 and later decrease to 4.5 percent by the end of 2027.
