Federal Debt to Exceed GDP for First Time since World War II: Watchdog

Debt held by the public is on track to exceed the size of the entire U.S. economy this year for the first time since World War II, according to a new analysis by the Committee for a Responsible Federal Budget (CRFB).

According to projections from the group, which advocates for lowering the federal debt, the deficit for fiscal 2020 will exceed $3.8 trillion, more than 2.5 times the record set during the Great Recession.

The annual deficit, the amount the government has to borrow to pay its bills, adds to the overall accumulated debt the government must eventually pay off.

Since gross domestic product (GDP) last year was $21.4 trillion and expected to shrink this year, U.S. debt is projected to exceed about $20 trillion, according to the watchdog.