#USNationalDebt The US national debt is approximately $36.2 trillion as of May 2025, with a per-person debt of around $106,000. To break it down further:
- *Total National Debt*: $36.2 trillion
- *Debt Held by the Public*: $29 trillion
- *Intragovernmental Holdings*: $7.4 trillion
The debt-to-GDP ratio stands at 121% as of Q1 2025, indicating that the country owes almost 1.21 times its annual economic output. This ratio has been increasing due to factors like rising healthcare costs, aging demographics and significant government spending.
*Key Concerns:
- *Interest Payments*: The US government spends over $870 billion annually on interest payments, which is around 10.7% of its total spending.
- *Debt Sustainability*: The Congressional Budget Office projects that the debt-to-GDP ratio will reach 156% by 2055 if current trends continue.
- *Economic Impact*: High debt levels can lead to reduced economic growth, increased borrowing costs and decreased investment.
*Recent Developments:
- The national debt recently surpassed $37 trillion, sparking concerns about the country's fiscal sustainability.
- Annual deficits of $2 trillion are driving the debt surge, fueled by rising spending and stagnant revenue growth.