In 2009 the federal budget deficit reached a high of $1.4 trillion, 10.1% of GDP, however it is rapidly shrinking. The CBO has said that the deficit will be less than half that amount in 2013. $642 billion 4% of GDP. That’s $200 billion less than the CBO predicted just a few months ago.
Several factors played into this. The fact that the housing market is recovering and the economy is better than expected are key. Read more: at www.business.time.com