Global Markets
Home›Global Markets›North America›US national debt tops US$40 trillion, economists quest…
US national debt tops US$40 trillion, economists question growth plan
The debt level rose by US$10 trillion since 2022, and economists cite rising debt-servicing costs and tax cuts as structural barriers.
The US national debt has surpassed US$40 trillion, a milestone reached last week that is intensifying debate over whether the country can manage its fiscal burden by relying on economic growth, according to SCMP Economy.
Washington has argued that growth can absorb the debt trajectory, with Treasury Secretary Scott Bessent defending the spending path as investment in factories and equipment, and telling CNBC the US would “grow our way out of” the current level.
But some economists remain skeptical, pointing to persistent high government spending, higher debt-servicing costs, and tax cuts. Alicia Garcia-Herrero, chief economist for the Asia-Pacific region at Natixis, said the US has no chance of growing out of its debt problem through growth alone.
SCMP Economy also notes that despite relatively strong nominal growth in recent years, boosted by inflation, the US has continued adding debt, increasing by US$10 trillion since 2022 as public expenditure stayed elevated.