The Congressional Budget Office (CBO) has just released predictions that the federal budget deficit will reach its lowest point in the Obama era with the budget year ending in September. The CBO numbers project a deficit of $468 billion, which would be just lower than this past year where there was a deficit of $483 billion.
The official prediction points to anticipated economic growth in the next few years, and even a reduction in unemployment. The projection is based on an upturn in consumer spending, as well as an increase in investment in real estate and greater spending and investment from businesses. Other factors included an increase in average wages as well as the decrease in oil prices seen in recent months. The estimation is that the economy will see a 3 percent growth trend for the next two years, slowing slightly after that as more Baby Boomers are expected to retire, impacting the workforce. These projections are a stark contrast to the numbers from the first four years of the Obama presidency, where the budget topped $1 trillion every year.
By Jim Malone
Image courtesy of Barack Obama – Creativecommons Flickr License