Huawei Launches New flagship Phones in Bid to Keep No. 2 Spot

Huawei unveiled new flagship smartphones with novel smart camera and video features on Tuesday, as it seeks to sustain momentum among price-conscious consumers.

The Chinese company, which overtook Apple this year to become the No. 2 smartphone maker by units – behind South Korea’s Samsung (005930.KS) – introduced its Mate 20 phone series using Leica camera technology.

Huawei’s new premium phone line-up has four models available around the world, expect in the United States where sales are effectively banned over whispered national security concerns.

The new line-up includes the Mate 20, with list prices ranging from 799-849 euros ($925-$983), depending on memory configuration.

The fuller-featured Mate 20 Pro, is priced as low as 799 pounds at some UK retailers and list priced at 849 pounds or 1,049 euros across Europe. A comparable iPhone X Max from Apple costs 1,099 pounds in the UK.

The new phones include a new ultra-wide angle lens, as well as a 3x telephoto lens and a macro that shoots objects as close as 2.5 centimeters (1 inch).

Mate P20 models take advantage of artificial intelligence features built into Huawei’s own Kirin chipsets.

Features available to Mate 20 users include being able to isolate human subjects and desaturate the colors around them in order to highlight people against their backgrounds.

Huawei incorporates bigger light-sensing chips than rival phones to take better pictures in low-light conditions.

Gartner analyst Roberta Cozza said that in a highly commoditized smartphone market of look-alike phones, Huawei is managing to differentiate itself with camera and personalization features.

“With the Mate 20, Huawei is setting the bar for what users can expect from photography using a smartphone,” Cozza said.

The Chinese phone maker managed to surpass Apple to take the No. 2 spot in the second quarter, industry data shows, despite being effectively excluded from the U.S. market.

However, Apple commanded 43 percent of the premium market and a lion’s share of profits, CounterPoint Research estimated.

“Huawei is clearly ticking all the key boxes needed to displace rivals – and not just Android-powered rivals,” said Ben Wood, research chief of mobile industry consulting firm CCS Insight.

Wood said Huawei’s move to match Apple iPhone’s characteristic swipe gestures and face unlock features on its Mate 20 Pro could, in theory, make it easier for committed Apple buyers to switch, although he said that was unlikely near term.

“But it’s clear that Huawei has an eye on the future and is ready to take share from Apple if the time comes that a loyal iPhone owner decides to try something else,” he said.

The new premium phone line-up from the world’s biggest telecom equipment maker includes four models, the Mate 20, Mate 20 Pro, Mate 20 X, with a 7.2 inch display screen, and a Porsche Design limited edition phone.

From: MeNeedIt

Huawei Launches New flagship Phones in Bid to Keep No. 2 Spot

Huawei unveiled new flagship smartphones with novel smart camera and video features on Tuesday, as it seeks to sustain momentum among price-conscious consumers.

The Chinese company, which overtook Apple this year to become the No. 2 smartphone maker by units – behind South Korea’s Samsung (005930.KS) – introduced its Mate 20 phone series using Leica camera technology.

Huawei’s new premium phone line-up has four models available around the world, expect in the United States where sales are effectively banned over whispered national security concerns.

The new line-up includes the Mate 20, with list prices ranging from 799-849 euros ($925-$983), depending on memory configuration.

The fuller-featured Mate 20 Pro, is priced as low as 799 pounds at some UK retailers and list priced at 849 pounds or 1,049 euros across Europe. A comparable iPhone X Max from Apple costs 1,099 pounds in the UK.

The new phones include a new ultra-wide angle lens, as well as a 3x telephoto lens and a macro that shoots objects as close as 2.5 centimeters (1 inch).

Mate P20 models take advantage of artificial intelligence features built into Huawei’s own Kirin chipsets.

Features available to Mate 20 users include being able to isolate human subjects and desaturate the colors around them in order to highlight people against their backgrounds.

Huawei incorporates bigger light-sensing chips than rival phones to take better pictures in low-light conditions.

Gartner analyst Roberta Cozza said that in a highly commoditized smartphone market of look-alike phones, Huawei is managing to differentiate itself with camera and personalization features.

“With the Mate 20, Huawei is setting the bar for what users can expect from photography using a smartphone,” Cozza said.

The Chinese phone maker managed to surpass Apple to take the No. 2 spot in the second quarter, industry data shows, despite being effectively excluded from the U.S. market.

However, Apple commanded 43 percent of the premium market and a lion’s share of profits, CounterPoint Research estimated.

“Huawei is clearly ticking all the key boxes needed to displace rivals – and not just Android-powered rivals,” said Ben Wood, research chief of mobile industry consulting firm CCS Insight.

Wood said Huawei’s move to match Apple iPhone’s characteristic swipe gestures and face unlock features on its Mate 20 Pro could, in theory, make it easier for committed Apple buyers to switch, although he said that was unlikely near term.

“But it’s clear that Huawei has an eye on the future and is ready to take share from Apple if the time comes that a loyal iPhone owner decides to try something else,” he said.

The new premium phone line-up from the world’s biggest telecom equipment maker includes four models, the Mate 20, Mate 20 Pro, Mate 20 X, with a 7.2 inch display screen, and a Porsche Design limited edition phone.

From: MeNeedIt

Huawei Launches New flagship Phones in Bid to Keep No. 2 Spot

Huawei unveiled new flagship smartphones with novel smart camera and video features on Tuesday, as it seeks to sustain momentum among price-conscious consumers.

The Chinese company, which overtook Apple this year to become the No. 2 smartphone maker by units – behind South Korea’s Samsung (005930.KS) – introduced its Mate 20 phone series using Leica camera technology.

Huawei’s new premium phone line-up has four models available around the world, expect in the United States where sales are effectively banned over whispered national security concerns.

The new line-up includes the Mate 20, with list prices ranging from 799-849 euros ($925-$983), depending on memory configuration.

The fuller-featured Mate 20 Pro, is priced as low as 799 pounds at some UK retailers and list priced at 849 pounds or 1,049 euros across Europe. A comparable iPhone X Max from Apple costs 1,099 pounds in the UK.

The new phones include a new ultra-wide angle lens, as well as a 3x telephoto lens and a macro that shoots objects as close as 2.5 centimeters (1 inch).

Mate P20 models take advantage of artificial intelligence features built into Huawei’s own Kirin chipsets.

Features available to Mate 20 users include being able to isolate human subjects and desaturate the colors around them in order to highlight people against their backgrounds.

Huawei incorporates bigger light-sensing chips than rival phones to take better pictures in low-light conditions.

Gartner analyst Roberta Cozza said that in a highly commoditized smartphone market of look-alike phones, Huawei is managing to differentiate itself with camera and personalization features.

“With the Mate 20, Huawei is setting the bar for what users can expect from photography using a smartphone,” Cozza said.

The Chinese phone maker managed to surpass Apple to take the No. 2 spot in the second quarter, industry data shows, despite being effectively excluded from the U.S. market.

However, Apple commanded 43 percent of the premium market and a lion’s share of profits, CounterPoint Research estimated.

“Huawei is clearly ticking all the key boxes needed to displace rivals – and not just Android-powered rivals,” said Ben Wood, research chief of mobile industry consulting firm CCS Insight.

Wood said Huawei’s move to match Apple iPhone’s characteristic swipe gestures and face unlock features on its Mate 20 Pro could, in theory, make it easier for committed Apple buyers to switch, although he said that was unlikely near term.

“But it’s clear that Huawei has an eye on the future and is ready to take share from Apple if the time comes that a loyal iPhone owner decides to try something else,” he said.

The new premium phone line-up from the world’s biggest telecom equipment maker includes four models, the Mate 20, Mate 20 Pro, Mate 20 X, with a 7.2 inch display screen, and a Porsche Design limited edition phone.

From: MeNeedIt

Huawei Launches New flagship Phones in Bid to Keep No. 2 Spot

Huawei unveiled new flagship smartphones with novel smart camera and video features on Tuesday, as it seeks to sustain momentum among price-conscious consumers.

The Chinese company, which overtook Apple this year to become the No. 2 smartphone maker by units – behind South Korea’s Samsung (005930.KS) – introduced its Mate 20 phone series using Leica camera technology.

Huawei’s new premium phone line-up has four models available around the world, expect in the United States where sales are effectively banned over whispered national security concerns.

The new line-up includes the Mate 20, with list prices ranging from 799-849 euros ($925-$983), depending on memory configuration.

The fuller-featured Mate 20 Pro, is priced as low as 799 pounds at some UK retailers and list priced at 849 pounds or 1,049 euros across Europe. A comparable iPhone X Max from Apple costs 1,099 pounds in the UK.

The new phones include a new ultra-wide angle lens, as well as a 3x telephoto lens and a macro that shoots objects as close as 2.5 centimeters (1 inch).

Mate P20 models take advantage of artificial intelligence features built into Huawei’s own Kirin chipsets.

Features available to Mate 20 users include being able to isolate human subjects and desaturate the colors around them in order to highlight people against their backgrounds.

Huawei incorporates bigger light-sensing chips than rival phones to take better pictures in low-light conditions.

Gartner analyst Roberta Cozza said that in a highly commoditized smartphone market of look-alike phones, Huawei is managing to differentiate itself with camera and personalization features.

“With the Mate 20, Huawei is setting the bar for what users can expect from photography using a smartphone,” Cozza said.

The Chinese phone maker managed to surpass Apple to take the No. 2 spot in the second quarter, industry data shows, despite being effectively excluded from the U.S. market.

However, Apple commanded 43 percent of the premium market and a lion’s share of profits, CounterPoint Research estimated.

“Huawei is clearly ticking all the key boxes needed to displace rivals – and not just Android-powered rivals,” said Ben Wood, research chief of mobile industry consulting firm CCS Insight.

Wood said Huawei’s move to match Apple iPhone’s characteristic swipe gestures and face unlock features on its Mate 20 Pro could, in theory, make it easier for committed Apple buyers to switch, although he said that was unlikely near term.

“But it’s clear that Huawei has an eye on the future and is ready to take share from Apple if the time comes that a loyal iPhone owner decides to try something else,” he said.

The new premium phone line-up from the world’s biggest telecom equipment maker includes four models, the Mate 20, Mate 20 Pro, Mate 20 X, with a 7.2 inch display screen, and a Porsche Design limited edition phone.

From: MeNeedIt

Check-in With Facial Recognition Now Possible in Shanghai

It’s now possible to check in automatically at Shanghai’s Hongqiao airport using facial recognition technology, part of an ambitious rollout of facial recognition systems in China that has raised privacy concerns as Beijing pushes to become a global leader in the field.

Shanghai Hongqiao International Airport unveiled self-service kiosks for flight and baggage check-in, security clearance and boarding powered by facial recognition technology, according to the Civil Aviation Administration of China.

Similar efforts are underway at airports in Beijing and Nanyang city, in central China’s Henan province.

Many airports in China already use facial recognition to help speed security checks, but Shanghai’s system, which debuted Monday, is being billed as the first to be fully automated.

“It is the first time in China to achieve self-service for the whole check-in process,” said Zhang Zheng, general manager of the ground services department for Spring Airlines, the first airline to adopt the system at Hongqiao airport. Currently, only Chinese identity card holders can use the technology.

Spring Airlines said Tuesday that passengers had embraced automated check-in, with 87 percent of 5,017 people who took Spring flights on Monday using the self-service kiosks, which can cut down check-in times to less than a minute and a half.

Across greater China, facial recognition is finding its way into daily life. Mainland police have used facial recognition systems to identify people of interest in crowds and nab jaywalkers, and are working to develop an integrated national system of surveillance camera data.

Chinese media are filled with reports of ever-expanding applications: A KFC outlet in Hangzhou, near Shanghai, where it’s possible to pay using facial recognition technology; a school that uses facial recognition cameras to monitor students’ reactions in class; and hundreds of ATMs in Macau equipped with facial recognition devices to curb money laundering.

But increased convenience may come at a cost in a country with few rules on how the government can use biometric data.

“Authorities are using biometric and artificial intelligence to record and track people for social control purposes,” said Maya Wang, senior China researcher for Human Rights Watch. “We are concerned about the increasing integration and use of facial recognition technologies throughout the country because it provides more and more data points for the authorities to track people.”

From: MeNeedIt

Check-in With Facial Recognition Now Possible in Shanghai

It’s now possible to check in automatically at Shanghai’s Hongqiao airport using facial recognition technology, part of an ambitious rollout of facial recognition systems in China that has raised privacy concerns as Beijing pushes to become a global leader in the field.

Shanghai Hongqiao International Airport unveiled self-service kiosks for flight and baggage check-in, security clearance and boarding powered by facial recognition technology, according to the Civil Aviation Administration of China.

Similar efforts are underway at airports in Beijing and Nanyang city, in central China’s Henan province.

Many airports in China already use facial recognition to help speed security checks, but Shanghai’s system, which debuted Monday, is being billed as the first to be fully automated.

“It is the first time in China to achieve self-service for the whole check-in process,” said Zhang Zheng, general manager of the ground services department for Spring Airlines, the first airline to adopt the system at Hongqiao airport. Currently, only Chinese identity card holders can use the technology.

Spring Airlines said Tuesday that passengers had embraced automated check-in, with 87 percent of 5,017 people who took Spring flights on Monday using the self-service kiosks, which can cut down check-in times to less than a minute and a half.

Across greater China, facial recognition is finding its way into daily life. Mainland police have used facial recognition systems to identify people of interest in crowds and nab jaywalkers, and are working to develop an integrated national system of surveillance camera data.

Chinese media are filled with reports of ever-expanding applications: A KFC outlet in Hangzhou, near Shanghai, where it’s possible to pay using facial recognition technology; a school that uses facial recognition cameras to monitor students’ reactions in class; and hundreds of ATMs in Macau equipped with facial recognition devices to curb money laundering.

But increased convenience may come at a cost in a country with few rules on how the government can use biometric data.

“Authorities are using biometric and artificial intelligence to record and track people for social control purposes,” said Maya Wang, senior China researcher for Human Rights Watch. “We are concerned about the increasing integration and use of facial recognition technologies throughout the country because it provides more and more data points for the authorities to track people.”

From: MeNeedIt

Caution, Cancellations, Protests as Concerns Grow on China’s Belt and Road

Concerns about debt diplomacy on China’s expansive infrastructure megaproject — the Belt and Road — have become an increasing source of debate from Asia to Africa and the Middle East. In recent weeks, more than $30 billion in projects have been scrapped and other loans and investments are under review.

 

Public opposition is also testing the resolve of ruling authorities from Hanoi to Lusaka, the capital of Zambia, as concerns about Chinese investment build.

In late August, Malaysia’s newly elected Prime Minister Mahathir Mohamad canceled more than $20 billion in Belt and Road projects for railway and pipelines, and Pakistan lopped another $2 billion off plans for a railway following a decision late last year to cancel a $14 billion dam project, citing financial concerns. Nepal canceled its dam project last month and Sierra Leone announced last week that it was dropping an airport project over debt concerns.

 

In some countries such as Vietnam, it is just the idea of Chinese investment — against the backdrop of the Belt and Road — that has led to push back.

Following public protests, Vietnam recently decided to postpone plans for several special economic zones.

 

Several Belt and Road projects have seen setbacks in countries where debt concerns have coincided with political elections and a change of power — be it Pakistan, Malaysia or the Maldives, says economist Christopher Balding.

 

“The people in these countries are very worried about the level of debt that these countries are taking on in regard to China and I think that is very important to note,” Balding said. “It’s not just anti-China people that are driving this, but that there is a lot of concern on the ground in the countries about that.”

 

China says there are no political strings attached to its investments and loans. It also argues it is providing funding in places others will not. But Beijing’s takeover of a port in Sri Lanka last year and the sheer volume of Chinese investments along the Belt and Road project have done little to ease those concerns.

 

String of ports

 

Late last year, according to the New York Times, China agreed to forgive Sri Lanka’s debt in exchange for a 99-year lease of Hambanthota Port and 15,000 acres of surrounding land.

The government of Sri Lanka denies it divested land to a Chinese company, but the deal has convinced some that China is setting up debt traps to then take over the infrastructure that Chinese state-run companies build.

 

Hambanthota is one of 42 ports where China has participated in construction and operations, with more on the horizon.

In 2021, China will take over operation of one of Israel’s largest ports in Haifa. Beijing is also being eyed as a possible candidate for the development of Chabahar port in Iran, which is near the Iran-Pakistan border.

The port proposal remains in limbo, however, due to U.S. sanctions. And that’s not the only obstacle, according to David Kelly, research director at the Beijing-based group China Policy.

“It’s in the driest and most remote part of Iran,” Kelly said. “It looks like a real loser commercially, unless it handles a lot of oil.”

Analysts say the Middle East, with its oil money and deep pockets, is less at risk for debt traps.

 

However, the port that is most likely to follow in Sri Lanka’s footsteps is Djibouti, a strategically important country on the Horn of Africa, where China recently established its first overseas military base.

According to official figures, Djibouti’s debt is more than 88 percent of the GDP and China owns $1.4 billion of that. That kind of debt overhang could lead to the same type of concessionary agreements as in Sri Lanka, analysts note.

 

Debt traps

 

A report released earlier this year by Washington, D.C.-based Center for Global Development said 23 of the 68 countries where China is investing for Belt and Road projects are at high risk of debt distress. Another eight, including Djibouti, are vulnerable to debt distress linked to future projects.

 

China argues its investments are aimed at boosting trade and commerce and giving developing countries a leg up.

 

China Policy’s Kelly says places where the debt situation is more critical are countries such as land-locked and poverty-stricken Zambia. There, concerns are causing a very public push for the government to disclose the full burden of Chinese debt.

 

“The upset and upheaval in Zambia recently, where you’ve got African civil society coming out and making this case,” Kelly said, “That is always going to be more significant where you have the local people, making a local case.”

 

BRI indigestion

 

Oh Ei Sun, a senior fellow with the Singapore Institute of International Affairs, says cancellations and changes are what he calls Belt and Road indigestion.

Concerns about debt traps and debt diplomacy will not have an impact on China going forward, he says, but stops, starts and cancellations will continue.

 

Oh says China’s model of development — build infrastructure and the economy will grow — may have worked at home, but it doesn’t always fit along the Belt and Road.

 

“In many of these Belt and Road initiative countries, if you lay out the infrastructure, it doesn’t automatically mean that trade and investment will take place,” Oh said, “Some of these projects will have to be more attuned to the local requirements of particular countries.”

From: MeNeedIt

Caution, Cancellations, Protests as Concerns Grow on China’s Belt and Road

Concerns about debt diplomacy on China’s expansive infrastructure megaproject — the Belt and Road — have become an increasing source of debate from Asia to Africa and the Middle East. In recent weeks, more than $30 billion in projects have been scrapped and other loans and investments are under review.

 

Public opposition is also testing the resolve of ruling authorities from Hanoi to Lusaka, the capital of Zambia, as concerns about Chinese investment build.

In late August, Malaysia’s newly elected Prime Minister Mahathir Mohamad canceled more than $20 billion in Belt and Road projects for railway and pipelines, and Pakistan lopped another $2 billion off plans for a railway following a decision late last year to cancel a $14 billion dam project, citing financial concerns. Nepal canceled its dam project last month and Sierra Leone announced last week that it was dropping an airport project over debt concerns.

 

In some countries such as Vietnam, it is just the idea of Chinese investment — against the backdrop of the Belt and Road — that has led to push back.

Following public protests, Vietnam recently decided to postpone plans for several special economic zones.

 

Several Belt and Road projects have seen setbacks in countries where debt concerns have coincided with political elections and a change of power — be it Pakistan, Malaysia or the Maldives, says economist Christopher Balding.

 

“The people in these countries are very worried about the level of debt that these countries are taking on in regard to China and I think that is very important to note,” Balding said. “It’s not just anti-China people that are driving this, but that there is a lot of concern on the ground in the countries about that.”

 

China says there are no political strings attached to its investments and loans. It also argues it is providing funding in places others will not. But Beijing’s takeover of a port in Sri Lanka last year and the sheer volume of Chinese investments along the Belt and Road project have done little to ease those concerns.

 

String of ports

 

Late last year, according to the New York Times, China agreed to forgive Sri Lanka’s debt in exchange for a 99-year lease of Hambanthota Port and 15,000 acres of surrounding land.

The government of Sri Lanka denies it divested land to a Chinese company, but the deal has convinced some that China is setting up debt traps to then take over the infrastructure that Chinese state-run companies build.

 

Hambanthota is one of 42 ports where China has participated in construction and operations, with more on the horizon.

In 2021, China will take over operation of one of Israel’s largest ports in Haifa. Beijing is also being eyed as a possible candidate for the development of Chabahar port in Iran, which is near the Iran-Pakistan border.

The port proposal remains in limbo, however, due to U.S. sanctions. And that’s not the only obstacle, according to David Kelly, research director at the Beijing-based group China Policy.

“It’s in the driest and most remote part of Iran,” Kelly said. “It looks like a real loser commercially, unless it handles a lot of oil.”

Analysts say the Middle East, with its oil money and deep pockets, is less at risk for debt traps.

 

However, the port that is most likely to follow in Sri Lanka’s footsteps is Djibouti, a strategically important country on the Horn of Africa, where China recently established its first overseas military base.

According to official figures, Djibouti’s debt is more than 88 percent of the GDP and China owns $1.4 billion of that. That kind of debt overhang could lead to the same type of concessionary agreements as in Sri Lanka, analysts note.

 

Debt traps

 

A report released earlier this year by Washington, D.C.-based Center for Global Development said 23 of the 68 countries where China is investing for Belt and Road projects are at high risk of debt distress. Another eight, including Djibouti, are vulnerable to debt distress linked to future projects.

 

China argues its investments are aimed at boosting trade and commerce and giving developing countries a leg up.

 

China Policy’s Kelly says places where the debt situation is more critical are countries such as land-locked and poverty-stricken Zambia. There, concerns are causing a very public push for the government to disclose the full burden of Chinese debt.

 

“The upset and upheaval in Zambia recently, where you’ve got African civil society coming out and making this case,” Kelly said, “That is always going to be more significant where you have the local people, making a local case.”

 

BRI indigestion

 

Oh Ei Sun, a senior fellow with the Singapore Institute of International Affairs, says cancellations and changes are what he calls Belt and Road indigestion.

Concerns about debt traps and debt diplomacy will not have an impact on China going forward, he says, but stops, starts and cancellations will continue.

 

Oh says China’s model of development — build infrastructure and the economy will grow — may have worked at home, but it doesn’t always fit along the Belt and Road.

 

“In many of these Belt and Road initiative countries, if you lay out the infrastructure, it doesn’t automatically mean that trade and investment will take place,” Oh said, “Some of these projects will have to be more attuned to the local requirements of particular countries.”

From: MeNeedIt

US Budget Deficit Hits Six-Year High

The U.S. government’s budget deficit hit $779 billion in the fiscal year that ended Sept. 30, while spending increased and tax revenues remained nearly flat, the Treasury said Monday.

It was the biggest deficit since 2012, and $113 billion more than the figure a year ago. The 2018 deficit amounted to 3.9 percent of the country’s more than $18 trillion annual economy, up from 3.5 percent last year.

The government’s deficit spending boosted the country’s long-term debt figure to more than $21 trillion, forcing the government to pay an extra $65 billion last year in interest on money the government has had to borrow to run its programs.

In all, government spending rose by $127 billion last year, while tax collections increased by $14 billion.

The Treasury said the annual deficit rose partly because corporate tax collections dropped by $76 billion after Congress approved cuts in tax rates for both businesses and individuals that were supported by President Donald Trump.

Mick Mulvaney, the government’s budget director, said the country’s “booming economy will create increased government revenues — an important step toward long-term fiscal sustainability. But this fiscal picture is a blunt warning to Congress of the dire consequences of irresponsible and unnecessary spending.”

From: MeNeedIt

US Budget Deficit Hits Six-Year High

The U.S. government’s budget deficit hit $779 billion in the fiscal year that ended Sept. 30, while spending increased and tax revenues remained nearly flat, the Treasury said Monday.

It was the biggest deficit since 2012, and $113 billion more than the figure a year ago. The 2018 deficit amounted to 3.9 percent of the country’s more than $18 trillion annual economy, up from 3.5 percent last year.

The government’s deficit spending boosted the country’s long-term debt figure to more than $21 trillion, forcing the government to pay an extra $65 billion last year in interest on money the government has had to borrow to run its programs.

In all, government spending rose by $127 billion last year, while tax collections increased by $14 billion.

The Treasury said the annual deficit rose partly because corporate tax collections dropped by $76 billion after Congress approved cuts in tax rates for both businesses and individuals that were supported by President Donald Trump.

Mick Mulvaney, the government’s budget director, said the country’s “booming economy will create increased government revenues — an important step toward long-term fiscal sustainability. But this fiscal picture is a blunt warning to Congress of the dire consequences of irresponsible and unnecessary spending.”

From: MeNeedIt

US Budget Deficit Hits Six-Year High

The U.S. government’s budget deficit hit $779 billion in the fiscal year that ended Sept. 30, while spending increased and tax revenues remained nearly flat, the Treasury said Monday.

It was the biggest deficit since 2012, and $113 billion more than the figure a year ago. The 2018 deficit amounted to 3.9 percent of the country’s more than $18 trillion annual economy, up from 3.5 percent last year.

The government’s deficit spending boosted the country’s long-term debt figure to more than $21 trillion, forcing the government to pay an extra $65 billion last year in interest on money the government has had to borrow to run its programs.

In all, government spending rose by $127 billion last year, while tax collections increased by $14 billion.

The Treasury said the annual deficit rose partly because corporate tax collections dropped by $76 billion after Congress approved cuts in tax rates for both businesses and individuals that were supported by President Donald Trump.

Mick Mulvaney, the government’s budget director, said the country’s “booming economy will create increased government revenues — an important step toward long-term fiscal sustainability. But this fiscal picture is a blunt warning to Congress of the dire consequences of irresponsible and unnecessary spending.”

From: MeNeedIt

US Budget Deficit Hits Six-Year High

The U.S. government’s budget deficit hit $779 billion in the fiscal year that ended Sept. 30, while spending increased and tax revenues remained nearly flat, the Treasury said Monday.

It was the biggest deficit since 2012, and $113 billion more than the figure a year ago. The 2018 deficit amounted to 3.9 percent of the country’s more than $18 trillion annual economy, up from 3.5 percent last year.

The government’s deficit spending boosted the country’s long-term debt figure to more than $21 trillion, forcing the government to pay an extra $65 billion last year in interest on money the government has had to borrow to run its programs.

In all, government spending rose by $127 billion last year, while tax collections increased by $14 billion.

The Treasury said the annual deficit rose partly because corporate tax collections dropped by $76 billion after Congress approved cuts in tax rates for both businesses and individuals that were supported by President Donald Trump.

Mick Mulvaney, the government’s budget director, said the country’s “booming economy will create increased government revenues — an important step toward long-term fiscal sustainability. But this fiscal picture is a blunt warning to Congress of the dire consequences of irresponsible and unnecessary spending.”

From: MeNeedIt