Most Active Stories
- Money, Greed and Power Keep Chukchansi Casino Closed, Tribe Still Divided
- Drought: Tulare County Is “Blazing The Trail For The Rest Of California”
- Despite Smart & Final Setback, Swearengin Says Blackstone Vision Remains Sound
- An Average Of 15,000 Fresno Homes Breaking Lawn Water Rules
- Fresno's Anti-Blight Ordinance Passes First Test
Valley Public Radio Staff
Tue February 5, 2013
Economy To Slow This Year As The Government Tightens, CBO Says
While the economy will benefit from continued improvement in "underlying" conditions, the federal government's push to tighten its spending will slow overall growth in 2013, the Congressional Budget Office projects.
In an updated "Budget and Economic Outlook" reported released Tuesday afternoon, the agency forecasts:
-- 1.4 percent growth in gross domestic product this year, vs. 2.3 percent in 2012.
-- 2.6 percent growth in 2014.
-- 4.1 percent growth in 2015.
Meanwhile, the unemployment rate won't come down much:
-- It's expected to average 7.9 percent this year, vs. 8.1 percent in 2012.
-- 7.8 percent in 2013.
-- 7.1 percent in 2015.
As we reported earlier, the CBO's projections and the threat deep spending cuts could pose to the economy are among the reasons President Obama today urged Congress to pass a smaller package of spending reductions and tax changes that would take effect before the automatic "sequestration" takes effect on March 1.