The United States has reached a concerning milestone as its national debt has exceeded the size of its total economic output. Preliminary estimates released last week show that the country’s debt now stands at 31.26 trillion dollars, slightly higher than its GDP of 31.21 trillion dollars for the twelve months ending in March. This marks the first time since World War II and the COVID-19 pandemic that such an imbalance has occurred.

Economists have warned that the situation could push the US toward a major financial crisis if debt continues to grow faster than the economy. They argue that rising debt will make it increasingly difficult for the government to meet interest payments. Analysts also point to President Trump’s tax cuts and plans for higher military spending as factors that could worsen the fiscal strain.

According to the Congressional Budget Office, US debt could reach 120 percent of GDP by 2036, posing a significant threat to the global dominance of the dollar. The White House, however, maintains that measures are being taken to reduce wasteful spending and control expenditures.