According to MoneyTransfers.com, the US national debt has crossed the $31trn mark for the first time in history. The rise of government debt has led to serious questions regarding the country’s fiscal sustainability.

MoneyTransfers CEO Jonathan Merry said: “This is a very worrying development. The US government is borrowing heavily to try and offset the economic impact of the pandemic, but this is not sustainable in the long-term. With interest rates set to rise, the burden of servicing this debt will become increasingly expensive, and it is not clear how the government will be able to meet these obligations.”

Merry added: “It is imperative that the US government takes steps to get its finances in order, or else the country risks a debt crisis. This would have serious implications for the global economy, as the US is the world’s largest economy.

“The US must grow its economy faster to reduce the debt burden. The country can grow its economy by implementing pro-growth policies. Such policies include reducing regulations, reforming the tax code, and investing in infrastructure. The measure will help to reduce the dependence on domestic investors and improve the US debt profile.”