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A strong economy typically leads to narrower deficits, as rising household income and corporate profits help boost tax collections, while spending on safety-net programs tends to decline.
How much further it rises depends crucially on how fast the economy grows: higher growth leads to narrower deficits and a larger GDP to support the debt.
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That means the path to a narrower deficit is likely to continue.
At about 1.5percentt of total economic output, that figure is proportionately a much narrower deficit than those run up under President Ronald Reagan in the early 1980's.
The new British government has announced plans for sharp spending reductions aimed at narrowing deficits and government borrowing, even as the Bank of England has said the growth outlook is dimming.
Firms and households are saving on inputs; businesses and governments have rushed to develop new resources, as seen in the shale oil-and-gas bonanza now unfolding in North America.Currency adjustments have narrowed deficits.
Sacrifices were required, and government spending was cut from 30.7% of GDP in 1984 to 20.6% in 1989 to narrow deficits.
Higher taxes, rather than raising more revenue and narrowing deficits, have resulted in an exodus of productive citizens out of the Democratically controlled state.
Mr. Romney entered the conventions in a narrow deficit to Mr. Obama.
Ferrari have spent the last few races watching helplessly as a once-commanding championship lead for their driver Fernando Alonso has been turned into a narrow deficit by the revived steamroller that is Red Bull and Sebastian Vettel.
A falling dollar has helped spur American exports and curb imports, contributing to a narrower trade deficit.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com