U.S.A.-Europe facts of the day

The U.S. government Friday said its deficit rose to $1.7 trillion, or 6.3% of gross domestic product, in the year ended Sept. 30, from $1.4 trillion, or 5.4% of GDP, a year earlier. Without an accounting change related to the administration’s aborted student-loan-cancellation program, the deficit would have been closer to $2 trillion, a doubling from the prior year.

In projections released earlier this month, the International Monetary Fund projects U.S. deficits for all governments will reach 7.4% of GDP in 2024 and 2025.

But in Europe it is a different picture. The IMF expects combined deficits of eurozone governments will fall to 3.4% of GDP this year from 3.6% in 2022, and further to 2.7% in 2024.

Those countries that were in crisis a decade ago are expected to have much smaller budget gaps. In Greece, the deficit is forecast to fall to 1.6% of GDP from 2.3% last year, while Portugal’s is expected to fall to 0.2% of GDP from 0.4%. Ireland is forecast to have a budget surplus for the second straight year. Italy and France, among others, continue to have deficits of roughly 5% of GDP.

Here is more from Paul Hannon at the WSJ.