The deficit is projected to total $1.4 trillion in 2023 and to generally increase over the coming years, averaging $2.0 trillion over the 2024–2033 period. CBO expects economic growth to stagnate and inflation to slow in 2023 in response to the sharp rise in interest rates during 2022. After that, in CBO’s projections, output grows at a more robust pace as inflation continues to decline toward the Federal Reserve’s long-run goal of 2 percent.
