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Showing posts with the label Unraveling the Government's Purse: A Guide to Understanding Budgets

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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Unraveling the Government's Purse: A Guide to Understanding Budgets

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Budgets lie at the heart of government finances, serving as roadmaps for revenue, spending, and fiscal priorities. In this post, we'll delve into the intricacies of government budgets, exploring their components, purposes, and significance in the broader economic landscape. What is a Government Budget? A government budget is a financial plan that outlines the expected revenue and expenditure of a government over a specified period, typically one fiscal year. It serves as a comprehensive document detailing the government's financial commitments, priorities, and policies. Components of a Government Budget Government budgets typically consist of several components: Revenue: Revenue sources include taxes, fees, tariffs, and other forms of income generated by the government. Taxes may be levied on individuals, businesses, property, imports, and various economic activities. Expenditure: Expenditures encompass government spending on a wide range of activities and programs, including...
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