11.07.14
If you were wondering why you haven’t heard anything about the deficit in awhile…..
It’s because it has fallen so far so fast, and the concern that it is likely falling too far just doesn’t make for a good fear-inducing headline.
The numbers are in for FY2014, which ended on Sept 30.
$483 billion. 2.9% of GDP.
That’s down from last years (2013) $679.5 billion and 4.1% of GDP.
It’s down from the peak 2009 figure of $1.4 trillion and 9.8% of GDP.
This is the lowest deficit in dollars since 2008 and the lowest as a % of GDP since 2007. As a % of GDP, it’s just slightly lower than the average of the past 30 years.
To put it in graphical terms:
The current CBO forecast for the current fiscal year (2015) is $469 billion and 2.6% of GDP. It’s worth noting however, that as late as this past August the CBO was forecasting a $683 billion deficit for 2014, so it’s likely their 2015 forecast will be revised a lot lower in the near future.