New Forecast: Slightly Higher Deficit, Continued Sluggish Growth

New Forecast: Slightly Higher Deficit, Continued Sluggish Growth
(Washington, DC) -- A new economic forecast sees a slightly higher deficit and continued sluggish growth in the next year. The Congressional Budget Office says the deficit should rise to 506-billion dollars, a bit higher than an earlier estimate of 492-billion. CBO Director Doug Elmendorf thinks the pace of growth will increase next year.
CBO forecasts are done for the government's fiscal year, from October through September. Despite the upward revision, the federal deficit is still falling. It was roughly 680-billion a year ago and topped one-trillion dollars in 2009. Meantime, Elmendorf warned about the growing costs of Social Security and Medicare and the size of the federal debt. The debt is nearing 18-trillion dollars.
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Elmendorf sees gradually improving consumer confidence.
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