The Obama administration has trimmed its economic outlook, predicting that GDP will grow 2% this...

|By:, SA News Editor

The Obama administration has trimmed its economic outlook, predicting that GDP will grow 2% this year vs a prior forecast of 2.3%, and 3.1% in 2014 vs 3.2%. The White House's Office of Management & Budget cited "serious headwinds" for the reduced estimate, such as sequestration, European austerity and China's slowdown. The government also cut its deficit prediction to what would be the lowest level in five years, $759B, or 4.7% of GDP. The forecast in April was $973B, with higher-than-expected tax revenue helping to reduce the deficit.