Obama’s fantasy growth forecast
Another downgrade for the US economy:
(Reuters) – The International Monetary Fund cut its forecast for U.S. economic growth on Friday and warned Washington and debt-ridden European countries that they are “playing with fire” unless they take immediate steps to reduce their budget deficits.
The IMF, in its regular assessment of global economic prospects, said that bigger threats to growth had emerged since its previous report in April, citing the euro zone debt crisis and signs of overheating in emerging market economies.
The global lender forecast that U.S. gross domestic product would grow an anemic 2.5 percent this year and 2.7 percent in 2012. In its forecast just two months ago, it had expected 2.8 percent and 2.9 percent growth, respectively.
Let’s recall the White House forecast from February:
Looking ahead, the Administration projects moderate GDP growth of 3.1 percent in 2011, with growth then rising to an average rate of 4.1 percent during the next four years.
Speaks for itself, I think