Situation ( click on visual to get an idea of the 12 month rolling trend)
The deficit for the month of Mar’07 was at -96.71 Bn US $ ( as compared to -85.28 Bn US $ in Mar’06). This represents a 12.89% increase per annum
The deficit in Mar’07 dropped by 19.77% as compared to Feb’07 ( but this drop is a normal occurrence between Feb and Mar )
Background ( click on image for a better visual)
Fiscal deficit as a % of GDP has been on an increasing trend since 2006 Q2.
- The Q4 2006 deficit was -80.40 Bn US $.
- Fiscal Deficit as a % of GDP now stands at -2.39% for Q4 2006.
The Q1 2007 deficit now stands at -178 Bn US $
Conclusion
Even if the GDP grows in Q1 2007 at the same rate as Q4 2006 - the deficit will increase to 5 % of the GDP for Q1 2007.
Related Links
- USA - Fiscal situation as a percentage of GDP, under the recent four Presidencies ( since 1980 )
- Fiscal Deficit and Savings rate ( since 1981 )
- Manner in which the Deficit has been financed since 1995 ( Savings viz external debt)
- Relationship between Total Debt ( data from 1929) and External debt as a % of the GDP (data from 1995)
- USA - Relationship between GDP and Savings rate ( Quarterly data since 1985 )