US budget office lowers GDP forecast

​​​​​​​By Gokhan Ergocun

ISTANBUL (AA) - The US Congressional Budget Office (CBO) lowered its 2025 growth forecast for the economy from 1.9% to 1.4%, while raising unemployment expectations from 4.3% to 4.5%.

It updated its forecasts for growth, employment, inflation, interest rates and other data for 2025 - 2028, from an estimation in January, in light of recent economic developments.

The CBO revised its growth forecast for the economy to be lower this year and up in 2026 and 2028.

The economy is expected to grow 2.2% in 2026 and 1.8% in 2027 and 2028.

The inflation forecast for this year has also risen from 2.2% to 3.1%; inflation is expected to be at 2.4% in 2026 and 2% in 2027 and 2028.

The average unemployment rate expectation for the fourth quarter has been raised from 4.3% to 4.5% for this year, while it has been lowered from 4.4% to 4.2% for 2026.

Unemployment rate forecasts for 2027 and 2028 remained unchanged at 4.4%.

In January, the fourth-quarter average interest rate expectation, previously forecast at 3.7% for this year, was raised to 4% and it was also raised from 3.4% to 3.6% for next year.

The fourth-quarter average interest rate forecast for 2027 and 2028 was revised down from 3.4% to 3.3%.