'Although the national government's fiscal deficit breached 3 percent of GDP in 2018, general government deficits
remain contained, averaging well below 3 percent of GDP through 2022.
Over the medium term, larger or more rapid rise in government deficits
and debt/GDP ratio than we forecast or a deterioration in the credibility of policymaking, undermining the status of the U.S.
Apparently government deficits
do not care who is in office.
The lowest government deficits
as a percentage of GDP were recorded in Ireland (-0.2%), Estonia (-0.4%), Latvia (-0.6%) and Finland (-0.7%).
Some clarity has emerged regarding GCC governments' deficit financing strategies, with Qatar, Bahrain, and Oman largely focused on debt issuance rather than asset drawdowns, while Abu Dhabi, Kuwait, and Saudi Arabia are likely to have more of a split between issuing debt and liquidating part of their assets to fund their central government deficits
Absent a rebound in oil prices, we now expect general government deficits
of 10 per cent of GDP in 2016, 8 per cent in 2017, and 5 per cent in 2018, based on planned fiscal consolidation measures," said Standard and Poor's sovereign analyst Trevor Cullinan.
In 2013, Luxembourg registered a government surplus, Germany was close to balance, and the lowest government deficits
in percentage of GDP were recorded in Estonia, Denmark, Latvia and Sweden.
In 2012 the lowest government deficits
in percentage of GDP were recorded in Estonia (-0.3%), Sweden (-0.5%), Bulgaria and Luxembourg (both -0.8%) and Latvia (-1.2%), while Germany (+0.2%) registered a government surplus.
The IMF sees emerging markets as enjoying steady growth above 5 per cent in 2012-14, while their government deficits
hold steady at just over 2 per cent for the same period.
In 2011, the lowest government deficits
relative to GDP were recorded in Luxembourg (-0.3%), Finland (-0.6%) and Germany (-0.8%), while Hungary (+4.3%), Estonia (+1.1%) and Sweden (+0.4%) registered surpluses.
The rating agency expects any incoming government will continue to run high general government deficits
, as previous governments have done.
Urging politicians to act to control government deficits
, Cameron said that the crisis 'threatens the stability of the world economy.'