CBO’s Current View of the Economy and the Implications for the Federal Budget and for Workers
Report
CBO responds to questions about the agency's current view of economic growth and interest rates and the implications of that view for the federal budget—as well as about the implications of inflation for workers.
This letter responds to questions about the Congressional Budget Office’s current view of economic growth and interest rates and the implications of that view for the federal budget—as well as about the implications of inflation for workers.
In CBO’s current projections, real GDP grows by 1.5 percent in 2024 and by 2.2 percent in 2025, as measured in the fourth quarter of the year relative to the fourth quarter of the previous year. If economic growth in both 2024 and 2025 was 1 percentage point slower because of slower productivity growth, then the federal budget deficit from 2024 to 2033 would be about $690 billion larger.
