WASHINGTON - The Congressional Budget Office says the U.S. economy will grow by just 1.5 per cent this year — hurt by a poor first-quarter performance.
This new assessment is considerably more pessimistic than the Obama administration's.
Last month, the administration predicted that the economy would grow 2.6 per cent this year.
The CBO says the economy should grow by 3.4 per cent over 2015 and 2016, and predicts that the unemployment rate will remain below 6 per cent into the future.
The economy unexpectedly contracted over the first quarter of the year, in part because of an unusually harsh winter.
The CBO also projects that the government will run a deficit of $506 billion for the budget year ending Sept. 30.
Original headline: Congressional Budget Office predicts US economy will grow by just 1.5 per cent in 2014
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