U.S. economy is facing a long-term slowdown, crimped by debt and declining birth rates, CBO says

The U.S. economy could face slower economic growth over the next three decades due to weak population gains and increased government spending, the nonpartisan Congressional Budget Office said Thursday.

The CBO's latest long-term budget and economic outlook report, which covers a timeframe that spans 2025 to 2055, projects publicly held debt to reach 156% of gross domestic product, or GDP, in 2055. That's down from the agency's March 2024 long-term budget projection, which said publicly held debt would be equal to a record 166% of American economic activity by 2054.

But that's not necessarily a positive.