US Fiscal Deficit To Widen As Economic Growth Decelerates

Fitch expects that the fiscal deficit will widen to 4.0% of GDP in 2018 and 5.1% in 2019 on account of lower revenues as real GDP growth decelerates, and higher government outlays partly due to rising debt-servicing costs. A continued rise in debt levels over the coming years would put upside pressure of financing costs. However, the direct effect of higher interest rates on the budget will be limited in 2019. There is a growing possibility of a partial US government shutdown in December, but it is unlikely to alter our 2019 fiscal outlook materially.   

(Source: Fitch)