As speculation mounts that the U.S. could soon find itself in the grips of a recession, economists warn the federal budget deficit is plotting an “unsustainable” course.
The director of the Congressional Budget Office (CBO) has said the estimate for the 2019 deficit has spiked by $63 billion since May, the month of its last projections.
Long-term deficits are expected to be larger than previously projected, the office noted in a report published yesterday, as its economists confirmed that the projection of the cumulative deficit over the 2020–2029 period is now predicted to be $809 billion larger than it was in May.
The federal budget deficit is the shortfall of government income, and occurs when the nation’s expenses exceed its revenue. At the basic level, a recession is a sustained period of economic decline when economic activity significantly shrinks over two consecutive quarters.
Full article at: Newsweek