Structural Deficit

This refers to the level of deficit (when government spending exceeds taxation income) which occurs even then the economy is at full employment.

Structural Deficits ignore one-off or short term factors and continue for a longer period. As deficits are funded by borrowing, over time a large structural deficit will undermine confidence in the country’s ability to service that debt.

Structural Deficit is a term normally found in business economics and financial management.

Explore our learning zone to discover more

This entry was posted in . Bookmark the permalink.