Right now, the government is running a primary deficit of roughly 4% of GDP with the inflation-adjusted interest rate about level with the growth rate. So the debt is growing quickly, from a little under 100% of GDP now to an expected 122% by 2034. As it does, it will put upward pressure on the cost of borrowing, which could put downward pressure on economic activity. In other words, the growth of debt is at risk of not merely persisting but accelerating.
