EVEN before the Covid-19 pandemic, the federal deficit was brought down progressively for eight successive years from 6.7% of gross domestic product (GDP) in 2009 (after the 2008-09 Global Financial Crisis or GFC) to 2.9% of GDP in 2017 before resetting to 3.7% of GDP in 2018 and 3.4% of GDP in 2019.
The recession inflicted by the Covid-19 pandemic and extraordinary stimulus spending have widened the deficits to 6.2% of GDP in 2020, 6.4% of GDP in 2021 and 5.8% of GDP in 2022 and is expected to reduce slightly to 5.5% of GDP in the 2023 budget before the dissolution of Parliament.
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