Atlanta Fed raises GDP estimate to 2% for Q3
The projected annual rate of economic expansion in the United States for the third quarter has been raised to 2%, according to the GDPNow model released by the Federal Reserve Bank of Atlanta on Wednesday. This is an increase from 1.9% calculated on October 14, the bank said on its website.
Today's upward revision comes after the release of the Monthly Treasury Statement by Bureau of the Fiscal Service on Friday last week, Atlanta Fed explained. It added that the publication led to a higher forecast of growth in third-quarter real federal government expenditures. The statement revealed the U.S. government's budget deficit in the fiscal year 2016 reached $587 billion, $28 billion less than president Obama's forecast, and amounting to 3.2% of gross domestic product. The figure "would have been meaningfully lower if Congress hadn't passed unpaid-for business tax cuts at the end of 2015," Treasury secretary Jacob Lew said.