Dragi Says AI-Driven Productivity Growth Can Help U.S. Stabilize Debt, Provided Congress Curbs Deficit

Mario Dragi, former president of the European Central Bank, stated that stabilizing the U.S. debt situation does not require extraordinary effort if American policymakers can reach an agreement on cutting the deficit. Noting that artificial intelligence is driving expansion in the world's largest economy, Dragi reiterated his view from last year that reducing the massive debt burden requires only moderate productivity gains. Speaking Thursday, he said that keeping the debt-to-GDP ratio at around 100% after a decade would require only modest productivity growth. He added that while everything appears feasible, there is one condition: the U.S. fiscal deficit must not continue to expand.