Thursday, April 11, 2013

"The Rapidly Shrinking Federal Deficit" via Calculated Risk

From a research note by Goldman Sachs chief economist Jan Hatzius: The Rapidly Shrinking Federal Deficit

The federal budget deficit is shrinking rapidly. ...[I]n the 12 months through March 2013, the deficit totaled $911 billion, or 5.7% of GDP. In the first three months of calendar 2013--that is, since the increase in payroll and income tax rates took effect on January 1--we estimate that the deficit has averaged just 4.5% of GDP on a seasonally adjusted basis. This is less than half the peak annual deficit of 10.1% of GDP in fiscal 2009.

There are three main reasons for the sharp reduction in the deficit:

Read more...Calculated Risk: "The Rapidly Shrinking Federal Deficit"

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.