The Congressional Budget Office released a rundown of its 2016 economic outlook this past week, with the full report scheduled to be released this week. The report forecasts that the federal deficit will increase by as much as 24% in this coming fiscal year, and that the economic growth will be somewhat slow, due to declining tax revenues.
The major takeaway from the forecast is that the CBO projects public debt will grow faster than the U.S. economy. The report projects that the federal budget deficit will reach nearly 3% of GDP, and estimates growth may top out at 2.7% this year, declining to an average of only 2% over the next three years.
Congress hasn't helped much either. Legislation from last December extended tax cuts and set federal spending levels at an unsustainable level. Moreover, Congress hasn't managed to pass a balanced budget since Bill Clinton was President in 2001. Expect debt to be a major focus of the 2016 presidential election cycle.
CBI - Confederation of British Industry issued this content on 27 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 27 January 2016 13:13:39 UTC
Original Document: http://news.cbi.org.uk/news/cbo-releases-annual-budget-and-economic-outlook/
