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

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.