U.S. debt to reach 150 percent of GDP in 30 years: CBOWASHINGTON (Reuters) - U.S. debt held by the public will balloon to 150 percent of economic output by 2047 unless tax and spending laws are changed, the Congressional Budget Office said on Thursday, far exceeding the record level just after World War II. The new projections show steeper 30-year debt growth than last year’s long-term forecast by the non-partisan budget analysis agency, and could make it harder for some members of Congress to support a tax reform plan that is partly financed with higher deficits. Last year, the CBO estimated U.S. public debt would grow to 141 percent of gross domestic product by 2046, while the record was 106 percent of GDP in 1946. That level would be reached in 2035, the CBO said. Under this year’s projection, CBO predicts public debt for 2017 to be about 77 percent of GDP, growing to 89 percent in 2027, and 113 percent in 2037. The new forecasts assume that the Affordable Care Act, the healthcare law known as Obamacare that House Republicans failed to replace last week, stays in place for the long term. The projected debt growth reflects CBO’s estimates of the rising costs of caring for a growing population of people over 65, growth in interest costs, and assumptions of slower economic growth due to reduced assumptions about productivity gains. Annual deficits are expected to average 8.6 percent of GDP in the 2038-2047 period versus 2.9 percent expected for 2017 and 4.0 percent for the 2018-2027 period. The long-term projections extend CBO’s assumptions made in its 10-year budget outlook in January, which showed falling deficits for the next two years, but growth thereafter. Net interest costs in 2047 are expected to be 6.2 percent of GDP, compared with 1.4 percent in 2017 and about 1.2 percent in 1967, the CBO said.   But the wild card in the CBO 30-year projections are real interest rates. Real interest yields on 10-year Treasury notes are assumed to average 1.5 percent over 30 years, rising to 2.3 percent in 2047. Much higher interest rates, coupled with different assumptions in productivity and healthcare cost growth, could  produce significantly different outcomes, CBO said.  The CBO said that its debt-to-GDP ratio could range from 85 percent with low rates and strong growth, to 244 percent with weaker growth and higher rates.    politicsNews
debt reach percent gdp years cbowashington reuters debt held public balloon percent economic output unless tax spending laws changed congressional budget office said thursday far exceeding record level world war ii the new projections show steeper debt growth last year forecast budget analysis agency could make harder members congress support tax reform plan partly financed higher deficits last year cbo estimated public debt would grow percent gross domestic product record percent gdp that level would reached cbo said under year projection cbo predicts public debt percent gdp growing percent percent the new forecasts assume affordable care act healthcare law known obamacare house republicans failed replace last week stays place long term the projected debt growth reflects cbo estimates rising costs caring growing population people growth interest costs assumptions slower economic growth due reduced assumptions productivity gains annual deficits expected average percent gdp period versus percent expected percent period the projections extend cbo assumptions made budget outlook january showed falling deficits next two years growth thereafter net interest costs expected percent gdp compared percent percent cbo said but wild card cbo projections real interest rates real interest yields treasury notes assumed average percent years rising percent much higher interest rates coupled different assumptions productivity healthcare cost growth could produce significantly different outcomes cbo said the cbo said ratio could range percent low rates strong growth percent weaker growth higher rates politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: U.S. debt to reach 150 percent of GDP in 30 years: CBOWASHINGTON (Reuters) - U.S. debt held by the public will balloon to 150 percent of economic output by 2047 unless tax and spending laws are changed, the Congressional Budget Office said on Thursday, far exceeding the record level just after World War II. The new projections show steeper 30-year debt growth than last year’s long-term forecast by the non-partisan budget analysis agency, and could make it harder for some members of Congress to support a tax reform plan that is partly financed with higher deficits. Last year, the CBO estimated U.S. public debt would grow to 141 percent of gross domestic product by 2046, while the record was 106 percent of GDP in 1946. That level would be reached in 2035, the CBO said. Under this year’s projection, CBO predicts public debt for 2017 to be about 77 percent of GDP, growing to 89 percent in 2027, and 113 percent in 2037. The new forecasts assume that the Affordable Care Act, the healthcare law known as Obamacare that House Republicans failed to replace last week, stays in place for the long term. The projected debt growth reflects CBO’s estimates of the rising costs of caring for a growing population of people over 65, growth in interest costs, and assumptions of slower economic growth due to reduced assumptions about productivity gains. Annual deficits are expected to average 8.6 percent of GDP in the 2038-2047 period versus 2.9 percent expected for 2017 and 4.0 percent for the 2018-2027 period. The long-term projections extend CBO’s assumptions made in its 10-year budget outlook in January, which showed falling deficits for the next two years, but growth thereafter. Net interest costs in 2047 are expected to be 6.2 percent of GDP, compared with 1.4 percent in 2017 and about 1.2 percent in 1967, the CBO said.   But the wild card in the CBO 30-year projections are real interest rates. Real interest yields on 10-year Treasury notes are assumed to average 1.5 percent over 30 years, rising to 2.3 percent in 2047. Much higher interest rates, coupled with different assumptions in productivity and healthcare cost growth, could  produce significantly different outcomes, CBO said.  The CBO said that its debt-to-GDP ratio could range from 85 percent with low rates and strong growth, to 244 percent with weaker growth and higher rates.    politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: debt reach percent gdp years cbowashington reuters debt held public balloon percent economic output unless tax spending laws changed congressional budget office said thursday far exceeding record level world war ii the new projections show steeper debt growth last year forecast budget analysis agency could make harder members congress support tax reform plan partly financed higher deficits last year cbo estimated public debt would grow percent gross domestic product record percent gdp that level would reached cbo said under year projection cbo predicts public debt percent gdp growing percent percent the new forecasts assume affordable care act healthcare law known obamacare house republicans failed replace last week stays place long term the projected debt growth reflects cbo estimates rising costs caring growing population people growth interest costs assumptions slower economic growth due reduced assumptions productivity gains annual deficits expected average percent gdp period versus percent expected percent period the projections extend cbo assumptions made budget outlook january showed falling deficits next two years growth thereafter net interest costs expected percent gdp compared percent percent cbo said but wild card cbo projections real interest rates real interest yields treasury notes assumed average percent years rising percent much higher interest rates coupled different assumptions productivity healthcare cost growth could produce significantly different outcomes cbo said the cbo said ratio could range percent low rates strong growth percent weaker growth higher rates politicsnews