Federal Outlays: Interest as Percent of Gross Domestic Product
This dataset tracks federal outlays: interest as percent of gross domestic product over time.
Latest Value
3.02
Year-over-Year Change
122.78%
Date Range
1/1/1940 - 1/1/2024
Summary
The 'Federal Outlays: Interest as Percent of Gross Domestic Product' trend measures the proportion of the U.S. federal government's total spending that goes towards interest payments on public debt. This metric is a key indicator of fiscal health and debt sustainability.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This economic indicator tracks the federal government's interest expenditures as a percentage of the overall Gross Domestic Product (GDP). It provides insight into the cost of servicing the national debt and the government's fiscal obligations.
Methodology
The data is collected and calculated by the U.S. Bureau of Economic Analysis based on federal budget reports.
Historical Context
Policymakers and analysts use this trend to assess the government's debt burden and the tradeoffs between spending, taxation, and deficit financing.
Key Facts
- Interest payments accounted for 1.6% of GDP in 2022.
- The interest expense ratio peaked at over 3% of GDP in the early 1990s.
- Rising interest rates can increase the government's debt servicing costs.
FAQs
Q: What does this economic trend measure?
A: This trend measures the proportion of the U.S. federal government's total spending that goes towards interest payments on the national public debt.
Q: Why is this trend relevant for users or analysts?
A: This metric is a key indicator of the government's fiscal health and the sustainability of its debt burden, which is important for policymakers and financial markets.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the U.S. Bureau of Economic Analysis based on federal budget reports.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use this trend to assess the government's debt burden and the tradeoffs between spending, taxation, and deficit financing.
Q: Are there update delays or limitations?
A: The data is published regularly by the Federal Reserve, with a typical update delay of a few months.
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Citation
U.S. Federal Reserve, Federal Outlays: Interest as Percent of Gross Domestic Product (FYOIGDA188S), retrieved from FRED.