Fitch issues 'high budget deficit' warning!
According to the latest fiscal projections released by Fitch Ratings, the general government deficit in the US will exceed 8 percent of annual GDP in the 2023-2025 period.
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Fitch Ratings stated that although the US Congress passed a bill to prevent a partial government shutdown, this does not signal an improvement in budget policies.
US GOVERNMENT DEFICIT TO INCREASE
According to the latest fiscal projections released by Fitch Ratings, the general government deficit in the US will exceed 8 percent of annual GDP in the 2023-2025 period.
In the report it released, Fitch stated, "This rate is much higher than our August rating downgrade, where we projected deficits of 6.3 percent, 6.6 percent, and 6.9 percent of GDP for 2023, 2024, and 2025, respectively."
The credit rating agency also said that the revisions in December "reflect worse-than-expected second-quarter 2023 results."
According to Fitch, the current projections also indicate that the ratio of US general government debt to GDP will rise above 120 percent in 2025.