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Deficit in sentence

2808 examples of Deficit in a sentence

The Syrian track – requiring Israel’s withdrawal from the strategically vital Golan Heights and the evacuation of tens of thousand of settlers – is hampered not only by the Israeli leadership’s legitimacy deficit, but also by US opposition to the talks.
But if the US fails to narrow its savings gap, its current-account deficit will not disappear, regardless of where the dollar goes.
Whether America can achieve decent growth while keeping its current-account deficit in check depends on whether it can reinvigorate its ability to innovate and create, thereby restoring competitiveness and creating demand at the same time.
A key pillar of their prevention strategy is to scale back “global imbalances,” a euphemism for the huge US trade deficit and the corresponding trade surpluses elsewhere, not least China.
In the run-up to the financial crisis, the US external deficit was soaking up almost 70% of the excess funds saved by China, Japan, Germany, Russia, Saudi Arabia, and all the countries with current-account surpluses combined.
It took the financial crisis to put the brakes on US borrowing train – America’s current-account deficit has now shrunk to just 3% of its annual income, compared to nearly 7% a few years ago.
If foreign debt matters more than public debt, the key variable requiring adjustment is the external deficit, not the fiscal deficit.
First, it has often been pointed out that austerity can be self-defeating, because a reduction in the fiscal deficit can lead in the short run to an increase in the debt/GDP ratio if both the debt level and the multiplier are large.
The economy is contracting so much that the debt/GDP ratio is actually increasing, and the actual deficit is improving only marginally, because government revenues are falling along with GDP.
For starters, the US will face recurring challenges with the “fiscal cliff” until financial markets pressure policymakers into more radical deficit reduction.
But the global economy could be weaker in 2013 than it was in 2012 if the worst continues to prevail in Europe and the US, particularly if the new US Congress cannot work with a re-elected President Barack Obama to find a budget deal that improves the medium-term credibility of the US fiscal position while avoiding excessive deficit cutting.
The US economy’s road to recovery is being built on the shale-gas revolution, a revived manufacturing sector, and a decline in the US budget deficit in GDP terms.
Bailouts from the European Stability Mechanism represent the clearest example of this, with the fiscal compact now committing signatories to tight deficit targets and structural adjustment.
In his forthcoming budget, however, Chancellor of the Exchequer Gordon Brown may need to admit that the UK risks breaching the Maastricht Treaty's deficit limits.
Last November, Chancellor Brown forecast that the UK's budget deficit would rise to £24 billion in 2003/4, then fall to £19 billion by 2004/5-well below the Maastricht Treaty's ceiling of 3% of GDP.
But the average forecast among analysts is a £27 billion deficit next year, and some observers project a deficit of £30 billion or more in 2004/05.
Some project that the cumulative deficit over the next four years will be £26 billion higher than the Treasury predicts.
The US was running a deficit of more than 6.5% of its GDP, and China had a surplus of close to 10% of its GDP.
Today, the US deficit has fallen to about 2%, and the Chinese surplus is less than 3%.
The European Union's leading country, Germany, failed to meet its commitments to its EU partners concerning its deficit.
Furthermore, it used its political muscle to block the early warning about its deficit that the EU Commission had mandated by the terms of the Stability Pact.
Not only is the Pact's fixed 3% limit for the ratio of budget deficit to GDP arbitrary, but it also ignores the fact that when an economy slows, deficits increase automatically.
They introduced a safety clause allowing a country to suspend the deficit ceiling in case of serious recession, but they went on to define a serious recession in such a way as to make such a suspension implausible in practice.
Mindful that normal slowdowns could lead to a breach of the ceiling, they decreed that a normal deficit is a zero deficit.
Thus France cannot meet the Pact's deficit target.
The Stability Pact is too crude and technocratic: a 3% deficit target enforced by Brussels bureaucrats cannot bind real-life politicians.
They also believe that the government deficit drives up inflation and interest rates, thereby crowding out other spending by consumers and firms.
In addition to suffering from a lack of clarity on key issues, EU fiscal policy remains overly focused on short-term goals, reflected in its needless emphasis on nominal deficit targets within annual budget cycles.
It would not require a headline deficit of below 3% of GDP in each and every year, in each and every country.
This precludes deficit finance to boost growth.
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