CBO Projects $1.3 Trillion Deficit For 2011
Wednesday, August 24, 2011 at 11:23AMThe Congressional Budget Office has predicted that the nation will reach a federal deficit of $1.3 trillion for 2011, marking the third largest shortfall in 65 years.
In its recent economic outlook update, the CBO expects that the country’s GDP will slowly increase by 2.3 percent in 2011 and 2.7 percent in 2012. The agency indicated that, although the economy began to expand again two years ago, recent market turmoil has slowed the pace at which the economy is growing.
As a result, the CBO expects employment to expand at a similar pace. The unemployment rate is expected to drop from 9.1 percent in the second quarter of 2011 to 8.9 percent by the fourth quarter of 2011 and down to 8.5 percent by the end of FY2012. The nation’s unemployment rate is not expected to fall below 8.0 percent until 2014.
Reader Comments