fiscal deficit

What happened in 2021

Vie, 01/07/2022 - 20:12 -- anegrete

The rebound of the world economy was the great feature of the year 2021. Anticipated as strong rebounds, they were less strong for some than for others. Governments that injected money into public investment improved their recovery more than those that did not.

2021 has been the one with the highest inflation in the world since the 1970s with Brazil, Turkey and the United States leading the way, but followed by everyone else. The consequence is that central banks around the world initiated interest rate hikes as a way to contain inflation, so the GDP growth rate in 2022 will be very low overall.

It was a good year of economic rebound, but at the cost of high global inflation that central banks will have to face in the years to come. The recovery was rapid due to increases in government deficits and debt, and even so, spending still does not contribute to economic growth.

Build Back Better throughout 2021

Vie, 11/26/2021 - 09:47 -- anegrete

In May 2021, President Joseph Biden released his proposed 2022 U.S. budget, outlining spending levels for the next ten years. The program has been modified during congressional negotiations, as the real cost of some policies could be excessive.

The constant deficit of the US government has not favored the economic growth of the country. The increase in public debt at an average annual rate of 7% between 2010 and 2021 translated into an annual GDP growth rate of 1.9% in the same period. According to estimates in the congressional resolution, its growing debt issuance will continue.

If approved, the question is not just whether these expenditures and investments have an impact on national income and are capable of stimulating private investment in the midst of the post-pandemic recovery.

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