The U.S. budget deficit reached a record for six years

Дефицит бюджета США достиг рекорда за шесть лет

In relation to the U.S. GDP, the deficit increased to 3.9%

Budget expenditures in the US grew by 3% to 4.1 trillion dollars. The growth was due to increased interest payments on the national debt, the costs of social security and military expenditures.

In 2018, the U.S. budget deficit reached a record over the past six years mark. At the end of the financial year on 30 September it amounted to $ 779 billion. It is 113 billion, or 17% more than in 2017.

This is stated in the message of the U.S. Treasury Department, published on Monday, October 15.

Relative to GDP, the deficit increased by 0.4% from 3.5% to 3.9% of GDP. In particular, Federal spending increased by 3% to 4.1 trillion dollars. The growth was due to increased interest payments on the national debt by 14% ($65 billion) and the cost of social security by 4% ($39 billion) in connection with the aging of the population. Military expenditures increased by 6% ($32 billion).

The most significantly decreased spending on education by 43% ($48 billion).

Earlier it was reported that US GDP rose to its highest level in four years – 4.2% in recalculation on annual rates. The pace of economic recovery in the United States are the highest since the third quarter of 2014.

We will remind, the President of the United States Donald trump promised Americans a “new economic miracle”. According to him, if there were no hurricanes in the past year, the economy would have grown even stronger.

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