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Deficit in sentence

2808 examples of Deficit in a sentence

And, even at such a low level of investment, Brazil’s current-account deficit is more than 2% of GDP, exposing an alarming paucity of domestic savings.
Although US politicians focus on the bilateral trade deficit with China – which is persistently large – what matters is the multilateral balance.
America’s multilateral trade deficit will not be significantly narrowed until America saves significantly more; while the Great Recession induced higher household savings (which were near zero), this has been more than offset by the increased government deficits.
This would mean reversing the recent decline in the government budget deficit, which narrowed to 1.8% last year, from 2% of GDP in 2013.
After all, who cares about Florida’s current-account deficit – or even knows what it amounts to?
This problem is shared by all deficit countries, but is acute in Southern Europe.
Indeed, Mexico’s trade deficit with China reached $9 billion in 2003.
The result is that the fiscal deficit has fallen, but still hovers at 5.5% of GDP.
Yes, Argentina’s current-account deficit exceeds 5% of GDP, while Brazil’s external position is nearly balanced.
The budget deficit is 8% of GDP; the current account deficit comes to 4% in a year where growth is near zero.
This is 8.5 times higher than the total US current-account deficit of $3.9 trillion during the same period.
Moreover, premature and excessive hawkishness would strengthen the US dollar and sharply increase the US trade deficit, undermining Trump’s stated goal of creating jobs and boosting incomes for his blue-collar, working-class electoral base.
Similarly, Trump’s fiscal policies would also weaken the dollar over time – after an initial significant appreciation – as the substantially higher deficit spending would be financed either with easy money or bond issues that increase US sovereign risk.
Before the financial crisis, even Germany violated the EU Stability and Growth Pact’s (SGP) deficit limits.
In the US, the 1980’s deficit limits set by the Gramm-Rudman-Hollings law were not met, and, like the SGP, were revised and extended.
The news came as quite a shock: Recall that when Greek officials came clean about the true state of their country’s public finances in 2010, the budget deficit was more than 10% of GDP – a moment of statistical honesty that triggered the eurozone debt crisis.
It seemed too good to be true that the Greek deficit would be completely eliminated in just three years.
Any reader who went beyond the headlines soon discovered that the prediction of a zero budget deficit was in fact misleading.
The International Monetary Fund was predicting only that Greece would have a zero “primary” budget deficit in 2013.
A “primary” budget deficit (or surplus) is the difference between a government’s outlays for everything excluding the interest payments that it must pay on its debt and its receipts from taxes and other charges.
The overall budget deficit is still predicted to be 4.1% of Greece’s GDP in 2013 – a substantial improvement compared to 2010 but still far from fiscal balance.
The difference between the overall deficit and the primary deficit implies that the interest on the Greek national debt this year will be 4.1% of GDP.
If Greece had to borrow at the market interest rate on ten-year bonds, its deficit would rise by 6.5% of the Greek government debt or 11% of GDP.
In this case, the overall Greek deficit would be about 15% of GDP, putting its debt on a rapidly exploding path.
Greece’s economic weakness increases the current level of the deficit.
The IMF estimates that these cyclical effects on revenue and outlays have raised the overall deficit by nearly 5% of Greek GDP.
More generally, the national debt of any country grows by the size of its budget deficit or declines by the size of its budget surplus.
Even an economy with an overall budget deficit will have a declining government debt/GDP ratio if the growth rate of its nominal GDP exceeds that of its debt.
For Greece, with an overall deficit of 4.1% of GDP and a debt/GDP ratio of 170%, the debt ratio would fall if the combination of inflation and real (inflation-adjusted) GDP growth exceeded 2.4%.
Stated differently, now that Greece has achieved a zero primary budget deficit, its debt burden will decline if its nominal growth rate exceeds the average interest that it pays on its government debt.
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