WASHINGTON (Sputnik) — The current baseline estimate for the deficit in 2017 is $559 billion, which equals 2.9 percent of the US GDP. It is less than $587 billion deficit posted in 2016, according to the report.
"In CBO’s baseline projections, budget deficits remain below 3.0 percent of GDP through 2019," the report stated.
"By 2027, the deficit would reach 5.0 percent of GDP — $1.4 trillion."
The CBO explained that continued growth in spending in such areas as social security, Medicare, and net interest will likely outstrip growth in revenues causing larger deficits.
The report said the US economic growth will likely remain modest within the next two years.
"Nevertheless, economic growth would continue to outpace growth in potential (maximum sustainable) GDP and thus continue to reduce the amount of underused resources, or slack, in the economy," the CBO noted.
