CBO Economy Predictions

CBO announced some of it's 'non-partison' predictions for our economic future.

Highlights:
"U.S. budget deficit is projected to be $1.3 trillion (for this year) down from $1.4 trillion forecast in April,..."
"(CBO) projected the deficit for (2012) at $973 billion, rather than the $1.1 trillion forecast in April."
"The economy remains in a severe slump,... CBO expects that the recovery will continue”

Inflation-adjusted gross domestic product "will stay well below the economy’s potential” for several years"

Income tax collections are up.

Un-employment is falling:
"...deficits will continue to shrink as the economy improves, albeit slowly. It projected an 8.9 percent  in the fourth quarter and an 8.5 percent rate in fourth quarter of 2012..."

"...unemployment will remain above 8 percent until 2014. The office also forecast a consumer price index rise of 1.5 percent from 2013 through 2016."

"The inflation-adjusted gross domestic product is projected to increase by 2.5 percent in the next fiscal year and 2 percent in fiscal 2013 before increasing to 3.4 percent in 2014 and 5.3 percent in 2015, the CBO said."

http://www.bloomberg.com/news/2011-08-24/u-s-deficit-estimated-at-1-3-trillion-this-year.html

The CBO also mentions that both spending cuts and tax increases can hurt recovery in the short term while helping deficits in the future.  Interesting.