Government spending is the annual value of all government spending on goods and services, expressed as a percentage of the gross domestic product. Source: International Monetary Fund.
Government spends in such large amounts that it has the power to stabilize commodity markets and otherwise shore up unsteady parts of the economy. By the same token, government is not very nimble; it responds slowly to market signals. As a result, its remedies may be untimely, even unhelpful. Economies that show high dependence on government spending may be less able to capitalize on emerging opportunities.