WASHINGTON—The White House cut its forecasts for economic growth and interest rates, resulting in slight reductions in projected deficits over the coming decade.They say insanity is doing the same thing over and over, and expecting the results to be different.
The new estimates were published Friday in the White House budget office’s “Mid-Session Review,” which updates the economic and fiscal projections made in the president’s February budget presentation to Congress.
Gross domestic product grew at a seasonally adjusted annual rate of 1.1% in the first quarter, the weakest pace in a year, due largely to a slowdown in business investment.
The deficit is expected to rise to 3.3% of GDP this year, from 2.5% last year, a projection that was unchanged in Friday’s report. The increase largely reflects policy changes resulting from last fall’s bipartisan budget and tax agreements.