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White House Cuts Growth Forecast for 2015, 2016

Wall Street Journal (07/15/15) Nick Timiraos

The White House estimates that U.S. growth will rise by just 2% this year before picking up to 2.9% in 2016, according to the White House budget office’s “Mid-Session Review,” released Tuesday. Both of these approximations are down from the previous 3% forecasted growth for 2015 and 2016. According to the report, the annual budget deficit is expected to fall to $455 billion this year, down 22% from the $583 billion projected in February. Short-term estimates for inflation and unemployment were also contracted. The White House now expects the unemployment rate to fall to 5.3% this year, and 4.9% next year—down from the previous forecasts of 5.4% and 5.1%, respectively—and the annual average of the consumer-price index to increase by only 0.2% this year—stopping short of the 1.4% gain that was published in February.