White House downgrades US economic growth for 2008 and 2009

by Sanjay Jha | July 28, 2008 at 11:12 pm

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Amidst the talk of recession in US economy, For the first time White house has admitted the slowdown in the econmy. White House had downgraded the growth forecast for current and next financial year.

The White House is lowering its forecast for economic growth this year and next held back by the toll of the housing, credit and financial debacles.

Under the Bush administration's new forecasts, gross domestic product is estimated to grow by only 1.6 per cent this year. That's down from a 2.7 percent growth projection made earlier this year.

Growth next year is expected to clock in at 2.2 percent, also lower than the 3 percent growth rate previously estimated by the White House's budget office.

The budget office increased its estimate for next year's budget deficit to a record $482 billion.