In CBO’s projections, deficits remain large by historical standards, and federal debt grows to equal 93 percent of GDP by 2029. As the effects of fiscal stimulus wane, projected economic growth falls back below the historical average.
In CBO’s economic forecast, which underlies its budget projections, the economy expands more slowly over the next decade than it did in 2018, averaging annual growth of 1.7 percent over the 2020– 2029 period. The slowdown begins in 2019 as the positive e ects of recent tax legislation on business investment are expected to wane and federal purchases under current law are projected to drop sharply starting in the fourth quarter of the year. Over the longer term, growth is below its historical average, primarily because the labor force is expected to grow more slowly than it has in the past.
Chosen excerpts by Job Market Monitor. Read the whole story at The Budget and Economic Outlook: 2019 to 2029 | Congressional Budget Office