Wednesday, September 7, 2011

Obama Administration Downgrades Economic Forecasts

Although the Administration of President Barack Obama has tried to garner support for its economic plan, officials have said the forecasts that were put out could be wrong, The Los Angeles Times reported.
Administration officials noted the forecasts that were originally put forward could be too optimistic, and that a downgrade of these predictions would be necessary, signalling a further decline of the economy, according to the newspaper.
Early this year, the White House said 3.1 percent growth for the gross domestic product was likely. Officials now believe growth may be less than 2 percent. The same type of downgrade is applicable for the unemployment rate, reported the Times.
“Today’s report confirms that the president’s policies have failed to deliver on his promises of job creation, deficit reduction and much-needed economic growth,” Representative Paul Ryan (R-Wisc.) said in a statement.
Although the numbers that were released from the White House have signaled that economic growth has slowed, officials from the Administration deny that the country is heading for a double-dip recession, according to Bloomberg.

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