WASHINGTON (MarketWatch) – The White House is projecting a lower deficit this year, of $1.58 trillion, down from $1.84 trillion, the Office of Management and Budget reported Tuesday.
In its mid-session review of the budget, the OMB also said economic growth is expected to resume later this year. Real gross domestic product is expected to decline by 2.8% this year but increase by 2% in 2010.
The reading on the U.S. deficit and growth forecast comes as there are now only a few signs of actual growth in the economy. See Capitol Report.
Last weekend, Federal Reserve Chairman Ben Bernanke said that the global economy is starting to come out of its worst crisis in generations.
“Prospects for a return to growth in the near term appear good,” Bernanke said. He cautioned, however, that “the economic recovery is likely to be relatively slow at first.” See earlier story.
Obama on Tuesday announced Bernanke’s reappointment as Fed chairman, saying he’d helped steer the U.S. free of another Great Depression.
Obama didn’t address the budget numbers. But he showed no signs of backing off on health-care reform or energy efficiency.
“Much like the decisions we’ve made so far, the steps we take to build this new foundation will not be easy,” Obama said in Martha’s Vineyard, Mass., where he is vacationing with his family this week.
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