The United States has the largest primary budget deficit among major advanced economies, at 3.3% of GDP for fiscal year 2024, down 0.5 percentage points from 2023. The total federal budget deficit reached $1.8 trillion, or 6.4% of GDP. The Congressional Budget Office projects the primary deficit will remain between 3.1% and 3.6% of GDP over the long term, indicating a structural rather than temporary imbalance. The main drivers are mandatory spending on programs like Social Security and Medicare, as well as rising interest costs on the national debt. This situation led to the US losing its AAA credit rating from S&P in 2011 and Fitch in 2023.
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