Economics
CBO Cuts U.S. Growth Forecast Amid Warnings on Trade Spats
- Congressional Budget Office cuts outlook to 3.1% versus 3.3%
- Economic momentum seen gradually slowing in subsequent years
Photographer: Andrew Harrer/Bloomberg
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The Congressional Budget Office slightly lowered its forecast for U.S. economic growth for this year, and warned of increasing uncertainty from American plans to widen tariffs.
The U.S. economy is projected to expand 3.1 percent this year, down from a previous forecast in April of 3.3 percent, the non-partisan group said in a report on Monday. The expansion will ease to 2.4 percent in 2019, unchanged from April’s projection, on slowing growth in business investment and government purchases, the CBO said.