budget deficit

France’s Prime Minister Sebastien Lecornu resigned on Monday, less than a month after being appointed as lawmakers continue to clash over reducing the budget deficit.

Investors are pouring money into dollar alternatives like precious metals due to growing concerns over sticky inflation, widening budget deficits and political uncertainties worldwide.

As Neil Shearing, group chief economist at Capital Economics, puts it: “There are no magic thresholds for either public debt or budget deficits beyond which fiscal crises become inevitable.”

Canadian officials have warned of a substantial budget deficit for the current fiscal year.

The picture looks unlikely to brighten soon as the government prepares to raise taxes this fall to plug a widening budget deficit, as borrowing costs continue to rise.