US economy set for solid growth, shrinking deficit: Congressional Budget Office
WASHINGTON (AFP) - The United States is expected to post solid economic growth of more than 3.0 percent through 2016, accompanied by a shrinking deficit, a government agency said Tuesday.
The Congressional Budget Office, the nonpartisan analysis arm of Congress, said in its latest report that the federal government's tax and spending policies would not constrain economic growth as much as they had in fiscal 2013, which ended Sept 30.
And state and local governments were expected to increase spending after several years of budget tightening, the CBO said.
In its economic and budget outlook report for 2014 to 2024, the CBO predicted growth in gross domestic product (GDP) at 3.1 per cent this year and 3.4 per cent in 2015 and 2016.