The US budget deficit will make 8,5 % of GDP in 2011
As Congressional Budget Office informs, the US budget deficit can make 1,3 trillion dollars during the current year, or 8,5 % of gross national product that will certainly become the third record-breaking indicator for the last 65 years. Previous, March forecast of the budget deficit was 1,4 trillion dollars.
As appears from the press release, the forecast for such high level of budget deficit is caused by the fact that the US hasn't still coped with the consequences of the world financial crisis of 2008-2009. The recovery was slow, and recent fluctuations in the country and overseas can prolong negative tendencies. The department assumes that country gross national product will increase by 2,3 % and by 2,7 % the next year taking into account the macroeconomic statistics of July.
During the period between 2013 and 2016 the average index of growth of gross national product is predicted at the level of of 3,6 %. The unemployment rate will be reduced from 9,1 % in the second quarter to 8,9 % in the fourth. The reduction of this indicator is supposed to be at the level of 8,5 %, however the rate of unemployment will be above 8 % till 2014.
It is also considered that inflation will be slowed down to 2 % in the second half of the year 2011 and will remain below this level within several next years. As Douglas Elmendorf , the director of the agency, declared that "the most part of difficulties is still ahead".