News

U.S. Debt Surge Triggers Alarm Bells Across Logistics Sector

June 05, 2025 2 min read
author Anamika Mishra [Sub Editor]
A recent economic forecast by Ernst & Young (EY) reveals alarming trends that could reshape the future of logistics and supply chain management. According to the May 2025 report commissioned by the Peter G. Peterson Foundation, the U.S. national debt is projected to climb beyond 117% of GDP by 2035 and reach 206% by 2075, threatening key sectors such as logistics chain management. The study warns that sustained federal deficits exceeding $2 trillion annually will lead to a major “crowding out” of private investment. EY's Quantitative Economics and Statistics (QUEST) team forecasts a 13% drop in private investment by 2035, which could rise above 21% by 2075. This spells trouble for logistics services and distribution networks that depend on a steady flow of capital to

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