Credit rating agency S&P Global (SPGI) has issued a new warning to the U.S. over its mounting debt.
Specifically, S&P Global has warned that America is unlikely to halt the worrisome rise in its debt levels over the next few years.
The U.S. national debt currently stands at $34.72 trillion U.S., a level that many economists have warned is unsustainable.
The federal government in Washington, D.C. is spending $728 billion U.S. to service the interest charged on America’s national debt, which accounts for 16% of total federal spending.
The U.S. national debt has grown every year over the past decade, rising under both Democratic and Republican presidential administrations.
However, the U.S. was not the only country that S&P Global has warned over its national debt. The ratings agency also issued similar warnings to Italy and France.
S&P Global said that, with upcoming elections in the U.S., Britain and France, governments are pledging to improve economies and social services, likely leading to increased deficit spending.
“In our view, only a sharp deterioration of borrowing conditions could persuade G7 governments to implement more resolute budgetary consolidation at the present stage in their electoral cycles,” wrote S&P Global its latest report on government debt.
S&P Global’s stock has increased 13% over the past 12 months and currently trades at $446.32 U.S. per share.
