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Showing posts with the label Surplus

U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook

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📉 U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook As 2025 unfolds, the U.S. economy is showing signs of strain amid a global slowdown and heightened trade barriers. Here's a detailed look at the latest forecasts and implications based on insights from the OECD, Federal Reserve, and key market indicators . 📊 1. U.S. Growth Forecast Downgraded by OECD The Organisation for Economic Co-operation and Development (OECD) has revised the U.S. GDP growth forecast for 2025 to 1.6% , down from 2.8% in 2024 . The forecast for 2026 remains muted at 1.5% , reflecting persistent uncertainty driven by: Elevated trade barriers Reduced consumer spending power Sluggish business investment 💸 2. Tariffs Fueling Inflation & Trade Costs The average U.S. tariff rate has climbed to 15.4% , the highest level since 1938 . These tariffs have raised import costs, which are now being passed on to consumers: Projected consumer price inflation is expected to rise to...
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Balancing Act: Exploring Balanced, Surplus, and Deficit Budgets

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Balancing a government's budget is akin to walking a tightrope, with fiscal decisions having far-reaching implications for the economy and society. In this post, we'll delve into the concepts of balanced, surplus, and deficit budgets, understanding their significance and impact on government finances and the broader economic landscape. Balanced Budget: Walking the Fiscal Tightrope A balanced budget occurs when a government's total revenues match its total expenditures for a given period, typically a fiscal year. In other words, a balanced budget implies that the government's income equals its expenses, resulting in a net-zero budgetary position. Surplus Budget: Building Reserves for the Future A surplus budget occurs when a government's total revenues exceed its total expenditures during a fiscal period. This surplus can be used to pay down existing debt, build financial reserves, or invest in infrastructure, education, or other priority areas. Surplus budgets are o...
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