As the U.S. significantly increased its fiscal spending to respond to Corona19, it was predicted that this year the ratio of fiscal deficit to GDP would be the worst since World War II.

The Congressional Budget Office (CBO) expects the federal government's fiscal deficit to reach $ 3.77 trillion (4,567 trillion won) this fiscal year (October 1, 2019 to September 30, 2020). Sun (local time) revealed.

The fiscal deficit is expected to reach $ 2.1 trillion next year.

CBO's forecasts for the previous month are significantly higher than the figure that this year and next year's deficit will slightly exceed $ 1 trillion, respectively.

As a result, the ratio of fiscal deficit to GDP skyrocketed from 4.6% last year to 17.9% this year and is expected to reach 9.8% next year.

Bloomberg reported that the deficit-to-GDP ratio peaked this year after World War II and was at the level of the global financial crisis triggered in 2008.

The CBO expects the federal government's debt-to-GDP ratio to rise from 101% last year to 101% this year and reach 108% next year.

The Corona19 situation has a significant negative impact on the government's fiscal health.

The sharp expansion of the fiscal deficit is the result of the US Congress passing a four-year budget measure from last month to nearly $ 3 trillion in response to Corona 19.

In particular, the CBO assumes that expenditure and income laws will not change and significant emergency funds will not be added, so the size of the deficit may increase if the US administration and Congress prepare future stimulus packages.

The CBO predicted that GDP growth compared to the previous quarter, starting at -0.9% in the first quarter, and bottoming at -11.8% in the second quarter, recovering to 5.4% in the third quarter and 2.5% in the fourth quarter, to record -5.6% annually. .

The growth rate is expected to be 2.8% next year.

In addition, the unemployment rate was expected to rise from 3.8% in the first quarter to 14.0% in the second quarter, peaked at 16.0% in the third quarter, and is expected to record 11.4% annually, including 11.7% in the fourth quarter.

The forecast for the next year's unemployment rate was also 10.1, still double-digit.