Example collocations logo

Deficit in sentence

2808 examples of Deficit in a sentence

Highlighting the dramatic economic effects of oil producers’ reversal of fortune, the figure below compares the sum of the balances (surplus or deficit) in the general government’s budget and the external balance, as measured by the current account, for 18 oil producers, with both components scaled to nominal GDP.
And long-term government bond yields are at an historic low, enabling governments to spend more and/or reduce taxes while financing the deficit cheaply.
In the United Kingdom, the new government, led by Prime Minister Theresa May, has dropped the target of eliminating the deficit by the end of the decade.
Trump also has a tax-reduction plan that would not be revenue-neutral, and thus would expand the budget deficit (though the effect on demand would likely be small, given the concentration of benefits at the very top of the income distribution).
But, if history is a guide, global events, not deficit hawks or military promoters, will have the ultimate say over how far defense reductions go.
Despite austerity, the forecast of this year’s UK structural deficit has increased from 6.5% to 8% – requiring an extra £22 billion ($34.6 billion) in cuts a year.
But if the government starts reducing its own deficit before private-sector spending recovers, the net result will be a further decline in total spending, and hence in total income, causing the government’s deficit to widen, rather than narrow.
Deficit reduction eventually will be put into cold storage, either openly, as I would prefer, or surreptitiously, as is politicians’ way.
It is emblematic of the laxity with which the Stability and Growth Pact was pursued that Greece was able to join the euro through plain fraud, claiming that its deficit ratio was below the 3%-of-GDP threshold when it was, in fact, far above it.
Why not, for example, entrust an independent bureaucracy with some redistributive goals or control over the level of public investment or deficit management?
To be sure, executives and entrepreneurs like to shake their heads over the current US fiscal deficit.
In fact, the latest forecast reflects an even worse outcome for France and Italy this year than originally promised, with France’s deficit set to increase slightly for 2015 and Italy’s cyclically adjusted deficit expected to deteriorate.
To see why, it is worth recalling that the SGP’s original rules were judged “stupid” by one former Commission president (Romano Prodi), because the single-minded pursuit of a deficit below 3 % of GDP could be inappropriate during recessions.
The United States and Japan remain important drivers of the global economy but face major debt and deficit challenges.
Many centrists agree that an optimal fiscal policy would feature short-term stimulus, a multi-year medium-term deficit reduction plan, and measures to reduce long-term liabilities, especially if retrenchment protected growth-oriented public-sector investments.
America’s gravest fiscal problem is the short- and medium-run deficit between tax revenues and spending.
This deficit is entirely of Bush’s own creation, having enacted – and now seeking to extend – tax cuts that are not cuts at all, because they merely shift the burden of fiscal consolidation onto future generations.
Dealing with the short- and medium-run deficit would be fairly straightforward: decide how large a share of GDP the federal government should take up, set spending at that level, and set taxes so that the budget is balanced (or so that the debt-to-GDP ratio is not growing) over the business cycle.
What it has done is propose an annual budget that entails a deficit of 2.4% of GDP in 2019 – around three times larger than the deficit proposed by the previous government, but hardly huge by international standards.
As expected, the budget proposal drew fire from the European Commission, which could open its first-ever “excessive deficit procedure” against a member state.
The accumulation of large surpluses, especially in emerging Asian economies and oil-exporting countries, enabled the US to finance its current-account deficit.
Enhancing the role of its Special Drawing Rights (SDRs), or supplementing the dollar with another world reserve currency, would help facilitate the financing needs of both deficit and surplus countries.
For deficit countries, borrowing from international institutions outside the markets would be easier, giving the issuer of such currency some form of international lender-of-last-resort function.
But this unsustainable expansion was financed by foreign borrowing, and the inflation rate has since skyrocketed to over 15%, with the current-account deficit exceeding 5% of GDP.
Yes, there are whispers that the pace of fiscal consolidation could be slowed; indeed, France has already been given more time to hit its deficit target.
Ferguson is correct that the US will have to come to terms with its budget deficit to maintain international confidence, but, as I show in my book The Future of Power, doing so is within the range of possible outcomes.
Brazil is not running a trade deficit at 7 or 8% of gdp, as did Mexico.
In fact, the deficit has swollen.
Everyone agrees that deficit reduction is required, while differing on how to go about it.
Another name for this approach is “transfer union,” which implies relentless economic austerity and declining living standards, because strong countries – first and foremost, Germany – are determined to limit their liability for bailing out deficit countries by making all transfers conditional on tough budget retrenchment.
BackNext