US Debt-to-GDP Hits 126% — Highest Since WWII

US Debt-to-GDP Ratio

The US debt-to-GDP ratio has climbed to 126%, surpassing the World War II peak of 119% in 1945. This means the federal government owes more than the entire US economy produces in a year. The ratio crossed the critical 100% threshold in 2016 and has been rising since the 2008 financial crisis, with a spike to 129% during the pandemic. Compared to other major economies, the US ranks fourth globally, behind Japan (264%), Singapore (168%), and Italy (144%). Economists consider ratios above 90-100% concerning, and the current level may impact borrowing costs and fiscal flexibility.