Wednesday, February 6, 2013

Deficit to drop to below $1T this year - CBO.

The deficit will fall to below $1T in 2013 for the first time since 2008, the CBO forecasts. Assuming that automatic cuts take effect in March, the deficit will drop to $845B in this year and then $616B in 2014. However, debt will continue to accumulate, taking the overall burden to $20T by 2023 and annual interest payments to above $850B. The CBO also predicts that GDP growth will slow to 1.4% in 2013 before accelerating to 3.4% next year.