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Deficit in sentence

2808 examples of Deficit in a sentence

The Scotland Act of 2012 caps the region’s deficit at 10% of its budget and limits how much the Scottish government can borrow.
But reconsidering debt and deficit limits on regional governments is not the same thing as abandoning them.
At the same time, rigid rules limiting deficit spending by regional governments could place the UK in the same fiscal straitjacket as the eurozone, where member states are prevented from borrowing in recessions.
The high and rising price of oil does, however, contribute to the decline of the dollar, because the increasing cost of oil imports widens the United States’ trade deficit.
In 2007, the US spent $331 billion on oil imports, which was 47% of the US trade deficit of $708 billion dollars.
If the price of oil had remained at $65 a barrel, the cost of the same volume of imports would have been only $179 billion, and the trade deficit would have been one-fifth lower.
The dollar is declining because only a more competitive dollar can shrink the US trade deficit to a sustainable level.
Thus, as rising global demand pushes oil prices higher in the years ahead, it will become more difficult to shrink America’s trade deficit, inducing more rapid dollar depreciation.
If the government tries to cut its deficit, households and firms will have to tighten their purse strings, resulting in less total spending.
As a result, however much the government cuts its spending, its deficit will barely shrink.
This will render meaningless EU-wide debt-management agreements, including the Stability and Growth Pact, which limits the overall deficit to 3% of GDP, and the 2012 “fiscal compact,” which stipulates that countries whose debt-to-GDP ratios exceed the 60% limit should reduce them by one-twentieth annually until they are in compliance.
Consider, for example, what happened after implementation of the 1985 Plaza Accord, which drove up the value of the yen: the US bought less from Japan, but bought more from other countries, causing the overall US trade deficit to remain roughly unchanged.
This chorus of grievance is so loud that tech “theft” may be a bigger concern for Americans than the size of the US trade deficit.
In Spain, Portugal, and Greece, the deficit has been reduced by more than seven percentage points of GDP since 2007, and in Ireland the current-account balance has swung into surplus.
With less than 5% of Britain’s trade deficit tied to Africa, the continent is not likely to be near the top of the UK government’s current preoccupations.
Cutting a deficit in a slump could never cause a recovery.
Any Keynesian knows that cutting the deficit in a slump is bad policy.
They describe it as “an approach to economics that emphasizes growth and income redistribution and deemphasizes the risks of inflation and deficit finance, external constraints, and the reaction of economic agents to aggressive nonmarket policies.”
The BoJ has kept the rate of interest at close to zero since then, while the government debt-to-GDP ratio has increased from 99% (1996) to 237% (2012) because of permanent Keynesian deficit spending.
Just as it is next to impossible to take a critically ill patient off life-support treatment, it is equally difficult to wean post-bubble economies from their now steady dose of liquidity injections and deficit spending.
Moreover, for too many investors, Portugal, with its poor growth prospects and insufficient domestic savings to fund the public-sector deficit, looks like Greece.
In other words, France uses African reserves to finance part of its budget deficit at a concessional interest rate.
Coming so shortly on the heels of the subprime crisis, the debate over the debt ceiling and the budget deficit is the last straw.
That could bring its current account into balance – or even into slight deficit – by 2015.
In most countries, the cuts in subsidies that accompanied price liberalization were offset in part, or even in full, by increased social spending, rather than deficit reduction.
Everything changed in 1971, when US President Richard Nixon, unable to contain the fiscal deficit resulting from spending on the Vietnam War and expanded social-welfare programs, abolished the dollar’s direct convertibility to gold.
This brings me to the third, and most fundamental, factor that is likely to cause the euro to strengthen substantially from its current level: global economic conditions require the eurozone to have a substantial trade and current-account deficit so that it becomes a large net importer of funds from the rest of the world.
But the eurozone can increase its inflow of foreign capital only if it has a current-account deficit, i.e., if it increases its imports relative to its exports.
As revenues fall and the deficit widens even faster, they will insist on spending cuts to return the debt trajectory to its previous path.
That decline in the dollar exchange rate is necessary to shrink the very large trade deficit that the US has with the rest of the world.
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