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Deficit in sentence

2808 examples of Deficit in a sentence

Moreover, even assuming that the impact of a permanent cut in public expenditure on demand and output is also permanent, the GDP reduction remains a one-off phenomenon, whereas the lower deficit continues to have a positive impact on the debt level year after year.
In the US, it might indeed be unreasonable to expect that a lower deficit translates into a lower risk premium – for the simple reason that the US government pays already ultra-low interest rates.
But, even without any confidence effects, the bipartisan Congressional Budget Office has concluded that, while cutting the US deficit does lower demand, it still leads reliably to a lower debt ratio.
The decisive question then becomes: What matters more, the impact of deficit cutting on the debt/GDP ratio in the short run or in the long run?
Prospective buyers of Italian ten-year bonds should look at the longer-term impact of deficit cutting on the debt level, which is pretty certain to be positive.
(A trade deficit is a subtraction from aggregate demand.)
In Britain, we have an economic plan that delivers economic stability, deals decisively with our record budget deficit, opens the country to trade and investment, and addresses the structural weaknesses that are holding us back as a place to do business and create jobs.
When the coalition government came to office three years ago, the United Kingdom’s deficit was forecast to be higher than that of any other country in the G-20, at more than 11% of GDP.
As a result, we have achieved a larger reduction in the structural deficit than any other major advanced economy.
The Office for Budget Responsibility, the body that provides an independent assessment of UK public finances, has shown that while the deficit has been coming down more quickly, stronger economic growth alone cannot be relied upon to address the deficit’s structural component.
Dealing with the deficit has required difficult decisions – from reforming the welfare system and increasing the state pension age to controlling public-sector pay.
In May 2010, financial markets lost confidence in the ability of Greece to manage its budget deficit and to repay its debt.
Unfortunately, because Italy will still be in recession next year, its actual deficit is expected to be 1.8% of GDP, adding to the national debt.
Given Italy’s very large national debt, interest payments add more than 5% of GDP to the fiscal deficit.
Despite cuts in government spending and increases in taxes, the IMF still projects the cyclically adjusted fiscal deficit to exceed 3.2% of GDP in 2013 and 2.3% of GDP in 2015.
None of this would be enough to save Greece, where the fiscal deficit is 7.5% of GDP, or Portugal, where it is 5% of GDP.
Germany now has a current-account surplus of about $215 billion a year, while the rest of the eurozone is running a current-account deficit of about $140 billion.
US President Donald Trump’s trade war will neither reduce America’s trade deficit nor turn back the technological clock on China.
He bolstered his image considerably after winning the 1994 election by tightening government finances and eliminating a huge fiscal deficit.
It is possible that, before the end of the decade, China’s current-account surplus will move into deficit, as the country imports more than it exports and spends its foreign-investment income on imports rather than on foreign securities.
Since China’s current-account surplus is now 6% of its GDP, if the saving rate declines from the current 45% to less than 39% – still higher than any other country – the surplus will become a deficit.
Italy has received a number of waivers from EU fiscal rules in recent years, allowing it to increase its deficit somewhat.
After all, Trump believes that a country with a bilateral trade deficit is necessarily being taken advantage of by its partner.
Moreover, the US runs a massive current-account deficit, meaning that it is borrowing much more from its foreign counterparts – especially China – than it is lending.
True, the trade deficit with China has cost the US jobs.
Moreover, though China is among the world’s leading recipients of foreign direct investment (FDI), it has failed to translate all that capital into a current-account deficit that would finance increased domestic investment and/or consumption.
Instead, by continuing to run a current-account surplus, China has established an irrational international investment position: despite having accumulated some $2 trillion in net foreign assets, it has been running an investment-income deficit for more than a decade.
The result is a massive budget deficit, which will expand to gargantuan proportions in the coming year (perhaps $1 trillion) under the added weight of recession, bank bailouts, and short-term fiscal stimulus measures.
Conventional macroeconomists like me look at America’s current-account deficit, now running at 7% of GDP, and know that such vast deficits are inevitably followed by large currency depreciations.
This means that unless America’s domestic savings rate rises mightily – which it shows no signs of doing – and unless investment expenditure remains abnormally low for the rest of this decade, the supply of loanable funds to finance investment will soon be much less than demand when the current-account deficit narrows to sustainable levels.
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