Congressional economists are predicting a slow rebound of the economy, with unemployment averaging 10.1 percent this year as the economy grows by just over 2 percent.
The latest estimates from the nonpartisan Congressional Budget Office see the economy growing only slightly more next year with an unemployment rate of 9.5 percent. But the CBO also projects that the economy will rebound sharply over the period from 2012-2014. That would be good news for President Barack Obama's re-election prospects.
The latest estimates see a $1.35 trillion deficit for the current budget year, dropping to $980 billion next year — but only if a host of tax cuts enacted under President George W. Bush are allowed to expire.