Iran Press/ America: The US gross domestic product (GDP) will plunge by nearly 40% on an annualized basis in the second quarter, according to the nonpartisan Congressional Budget Office.
It is said that the US deficit could quadruple to $3.7 trillion, one that would be unprecedented in the history of the US.
According to Reuters, the CBO report illustrated the fiscal pressures lawmakers in Congress face as they prepare to craft new legislation to respond to the pandemic. Congress has already passed $3 trillion in spending on healthcare, small businesses and other measures to combat the outbreak and its economic effects.
"If the laws currently in place governing spending and revenues generally remained unchanged and no significant additional emergency funding was provided, the federal deficit would be roughly $3.7 trillion in the fiscal year 2020 and $2.1 trillion next year,” the CBO said.
As this US congressional body stated the federal debt would equal 101% of GDP by September 30, when the 2020 federal fiscal year ends, and would grow to 108% by the end of fiscal 2021.
The record for the highest government budget deficit in a fiscal year is for the first year of Barack Obama's presidency (2009) when the US government was struggling to save its economy from a severe recession, pursuing expansionary fiscal policies, which eventually led to a $ 1.4 trillion budget deficit for the then US government.
219
Read More;
More than 700 aboard USS Theodore Roosevelt test positive for COVID-19
US death toll reaches to 45,340
US CDC chief warns second coronavirus wave could be worse
Amazon workers strikes over unsafe conditions amid Coronavirus
