The Congressional Budget Office is forecasting the U.S. economy will only grow 1.4 percent in 2013. That’s compared with the already-low 2.3 percent growth in 2012.
Economic fundamentals aren’t bad and are improving. But the federal government’s spending cuts are going to take a bite out of the economy right when our tepid recovery seems to be gathering a little steam.
Earlier estimates predicted the fiscal cliff deal would shave around 1.5 percent off of GDP growth this year. In other words, without the Right-imposed austerity, 2013 growth might otherwise be close to 3 percent.
As it is, the unemployment rate is forecast to average 7.9 this year.
Thanks a lot, Republicans in Congress.