Updated
Updated · MarketForces Africa · May 2
US fiscal position deteriorates as debt rises above 120% of GDP
Updated
Updated · MarketForces Africa · May 2

US fiscal position deteriorates as debt rises above 120% of GDP

10 articles · Updated · MarketForces Africa · May 2
  • Fitch says general government deficits will stay at 7.9% of GDP in 2026, with tariff revenues offsetting about half the tax cuts' fiscal impact.
  • The agency cut its 2026 net tariff revenue estimate by $150 billion after the Supreme Court struck down International Emergency Economic Powers Act tariffs.
  • Fitch said ageing costs, possible higher defence spending, shutdown risks and a potential 2027 debt-ceiling clash add pressure, though the dollar's reserve role and deep capital markets support the AA+ rating.
After a court ruling slashed tariff revenues, how will the U.S. fund its massive tax cuts and rising expenses?
With U.S. debt soaring past the size of its economy, can the dollar's dominance in the global financial system truly last?
As Social Security and Medicare funds deplete faster, what fiscal realities await future American retirees?