Fitch: Fiscal pressures in the US will continue regardless of the midterm election outcome

International credit rating agency Fitch announced that fiscal pressures in the US will persist independently of the midterm election outcomes, and risks regarding the budget deficit and debt limit continue.

In a statement made by Fitch, it was stated that the passage of one or both chambers of Congress under Democratic control following the upcoming midterm elections in the US would increase the likelihood of pursuing a risky policy regarding the debt limit and budget appropriations. It was emphasized that regardless of the election outcome, structural elements affecting the country's fiscal credit indicators will maintain their existence.

It was conveyed that the US federal government budget deficit rose to approximately $2 trillion in the 2026 fiscal year, and its ratio to Gross Domestic Product (GDP) increased to 6.1%. Noting that the general government budget deficit-to-GDP ratio is expected to rise to 7.5% in 2026 and 7.6% in 2027, it was expressed that these rates will be the highest among countries in the AA credit rating category.

It was stated that if current policies continue, the general government debt-to-GDP ratio is projected to reach 123% by the end of 2028 and 129% in 2030. It was recorded that as of October 26, the US debt subject to the debt limit stood at $40.93 trillion, and this amount remained $773 billion below the current limit.