
Congressional Budget Office Projects 3.1% Growth for U.S. Economy
Government spending, tax cuts and faster growth in private investment are expected to help the U.S. economy grow by 3.1% this year, according to the Congressional Budget Office (CBO). Still, the nonpartisan group’s report also pointed out the economy’s robust growth may stall next year once temporary government policies expire.
The CBO projects economic growth will slow to 2.4% in 2019 and to 1.7% in 2020, a level the group projects it will remain over the next decade.
Economists called the acceleration of growth “significant.” Decision Economics’ Allen Sinai told the Washington Post, “A year or so ago, 3.1% in annual growth did not look doable. But it has happened.”
Employees may also be in for brighter news, notes the CBO report. Wages and benefits are projected to be on a faster track, according to the index. The CBO said, “The increased demand for labor and competition for workers boost the growth of hourly labor compensation.”
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