China News Agency, Washington, May 25 (Reporter Sha Hanting) The economic outlook report released by the US Congressional Budget Office on the 25th local time predicts that the US gross domestic product (GDP) will grow by 3.1% in 2022, driven by consumption.
The Congressional Budget Office raised its forecast for U.S. economic growth in a report.Among them, driven by strong personal consumption, the US gross domestic product (GDP) will grow by 3.1% in 2022, 2.2% in 2023 and 1.5% in 2024.
The report also said that due to the impact of the new crown epidemic and the conflict between Russia and Ukraine, there is "great uncertainty" in the future of the US economy.
In addition, the report shows that high inflation in the United States will continue in 2022 and will start to improve in 2023.The Congressional Budget Office predicts that the U.S. consumer price index (CPI) is expected to increase by 4.7% year-on-year in 2022; the growth rate is expected to drop to 2.7% in 2023; and the growth rate is expected to drop to 2.3% in 2024.
The analysis believes that factors such as the economic stimulus plan adopted in response to the epidemic, supply chain problems and the conflict between Russia and Ukraine have contributed to the high inflation in the United States.
In response to inflation, the Fed has raised interest rates twice since March, by 25 basis points and 50 basis points respectively.Federal Reserve Chairman Jerome Powell said recently that it is appropriate for the Fed to raise interest rates by 50 basis points each at the next two regular monetary policy meetings.
Regarding the U.S. fiscal situation, the Congressional Budget Office predicts that the U.S. fiscal deficit will be reduced to $1 trillion in 2022, and the U.S. fiscal deficit will be as high as $2.8 trillion in 2021.The average annual fiscal deficit from 2023 to 2032 is expected to be about $1.6 trillion; by 2032, the fiscal deficit is expected to be 6.1% of GDP.(Finish)
