An Update to the Budget and Economic Outlook: 2015 to 2025
Abstract
According to the Congressional Budget Office s estimates, this year s deficit will be noticeably smaller than what the agency projected in March, and fiscal year 2015 will mark the sixth consecutive year in which the deficit has declined as a percentage of gross domestic product (GDP) since it peaked in 2009. Over the next 10 years, however, the budget outlook remains much the same as CBO described earlier this year: If current laws generally remain unchanged, within a few years the deficit will begin to rise again relative to GDP, and by 2025, debt held by the public will be higher relative to the size of the economy than it is now. CBO s economic forecast, which serves as the basis for its budget projections, anticipates that the economy will expand modestly this year, at a solid pace in calendar years 2016 and 2017, and at a more moderate pace in subsequent years. The pace of growth over the next few years is expected to reduce the quantity of underused resources, or slack, in the economy, lowering the unemployment rate and putting upward pressure on compensation as well as on inflation and interest rates.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 01, 2015
- Accession Number
- ADA621093
Entities
People
- Amber Marcellino
- Barry Blom
- Charles Whalen
- Christina H. Anthony
- Daniel Fried
- Joshua Shakin
- Leah Loversky
- Nathaniel Frentz
- Pamela Greene
Organizations
- Congressional Budget Office