U.S. national debt surges to $33 trillion amid looming government shutdown

Posted on September 22, 2023   |  

The looming government shutdown compounded challenges for the U.S. economy, which is already under strain.

In August, Fitch lowered its rating of U.S. sovereign debt from AAA to AA+ due to escalating debt levels and political discord.

Over the past 3 months, the national debt grew by $1 trillion, resulting in budgetary conflicts.

The budget deficit, reflecting the government's spending exceeding its income, reached $1.5 trillion during the first 11 months of the fiscal year, representing a 61% increase from the previous year.

Lawmakers must reach an agreement on the 2024 budget by October 1 to avert a shutdown, but none of the necessary appropriation bills have been approved by Congress.

A government shutdown could potentially cost the economy $6 billion per week, shave 0.1% off GDP growth in Q4 of 2023, and disrupt the timing of economic data.