CBO sees FY budget deficit of $1.865 trillion up from $1.832 trillion in FY 2024

January 17, 2025 at 05:06PM
The Congressional Budget Office is out with their forecast for the US deficit and also the benchmark for the new presidents term.

Congressional Budget Office forecasts FY 2025 U.S. budget deficit at $1.865 trillion vs $1.832 trillion FY 2024 deficit.

CBO forecasts FY 2025 deficit at 6.2% of GDP vs 6.4% in FY 2024, with 5.8% average for FY 2026-2035.

CBO forecasts U.S. public debt at 99.9% of GDP in 2025, rising to 118.5% in FY 2035 based on current laws.

CBO FY 2025 deficit forecast is $73 billion lower than in June estimate; FY 2026 deficit forecast at $1.713 trillion vs $1.851 trillion in June.

CBO forecasts cumulative FY 2026-2035 deficit at $21.758 trillion vs June deficit forecast of $22.08 trillion for FY 2025-2034.

CBO forecasts U.S. real GDP growth at 1.9% in 2025 vs June forecast of 2.0%, with 1.9% average for 2024-2034.

CBO forecasts 10-year U.S. Treasury yields at 4.1% in 2025, with a 3.9% average for 2024-2034.

Can the US grow greater than 1.9%? Trump and the GOP are looking for higher growth to “growth its way” out of the deficit.

This article was written by Greg Michalowski at www.forexlive.com.