In a report last week that the Obama Administration was still insisting that GDP growth in 2010 would be a strong 3.2%.
International Business Times reported:
Taking a closer look at how the President arrives at his rosy projection of cutting the deficit to “just” $530 billion by the end of 2013 you find he accomplishes it not by keeping expenditures off budget, like his processor, but by utilizing grossly unrealistic economic growth assumptions.
Mr. Obama assumes the contraction in GDP for 2009 will be only 1.2%. That’s a big improvement from the -6.34% annual rate drop of last quarter and far better than the non-partisan Congressional Budget Office’s (CBO) prediction of -2.2% growth for 2009. Then from there things get truly surreal. The Obama administration predicts GDP growth for 2010 will rebound to 3.2% and then increase by more than 4% for each of the next three years!
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But, on Sunday, Lawrence Summers, director of the White House National Economic Council, announced that the US economy would continue to decline for some time. And, in the same report the IMF said that the US economy will see no growth in 2010.
“I expect the economy will continue to decline,” with “sharp declines in employment for quite some time this year,” Summers said today on “Fox News Sunday.”
The International Monetary Fund, which held meetings last week in Washington, cut its forecast for each of the Group of Seven economies for this year and next. The IMF, established in 1944 to aid countries in financial crisis, said the U.S. economy would shrink 2.8 percent this year and have no growth in 2010, with unemployment rising to 10.1 percent.
Considering the Total US GDP was estimated at 14.2 trillion in 2008, the Obama Administration is so far off by nearly half a trillion or $454 Billion in GDP growth for next year.