The Congressional Budget Office adjusted its economic growth outlook for 2023 on account of inflation, higher interest rates and an uptick in unemployment that occurred in the second half of 2022.
In a report released Wednesday, CBO stated that compared to its assessment in May, rates of interest, unemployment and inflation will be greater in the next two years.
Based on data available through Nov. 16, economic growth will be slower in 2023 than previously expected, but it will recover in 2024. The agency had a more positive outlook using information it obtained through March 2, 2022.
CBO’s current assessment projects real gross domestic product growth to be lower than 2.2 percent in 2023, but higher than 1.5 percent in 2024. The national unemployment rate in 2023 and 2024 could be greater than 3.6 percent and 3.8 percent, respectively. Interest rates on Treasury bills for a three-month period are expected to range from 3.4 percent to 5.6 percent next year, and 1.7 percent to 4.8 percent the following year.
The agency is refining the preliminary results in preparation for the publication of its annual Budget and Economic Outlook.