150 YEARS OF NATIONAL DEBT

This chart is based on Congressional Budget Office projections that are based on current tax laws and spending patterns.

Visual Capitalist’s take on the debt today: The COVID-19 pandemic damaged the global economy, forcing governments to increase their spending. At the same time, many central banks reduced interest rates to zero.

In the U.S., federal debt has reached or surpassed World War II levels. When excluding intragovernmental holdings, it now sits at 104% of GDP — and including those holdings, it sits at 128% of GDP. But while the debt is expected to grow even further, the cost of servicing this debt has actually decreased in recent years.

This is because existing government bonds, which were originally issued at higher rates, are now maturing and being refinanced to take advantage of today's lower borrowing costs.

Good news: The U.S. national debt will remain manageable for the foreseeable future. In the long term, however, interest expenses are expected to grow significantly — especially if interest rates begin to rise again.