2008 Executive Forecast
On November 29, the White House lowered its forecast for next year’s economic growth, saying unemployment would rise as the housing slump and credit crunch weigh on national economic activity.
Under the administration’s new forecast, gross domestic product will grow by 2.7 percent next year. The previous projection called for a stronger, 3.1 percent increase. The unemployment rate, meanwhile, is projected to shift to 4.9 percent—the previously forecasted jobless rate was 4.7 percent. Inflation, however, is expected to improve. In addition, the White House anticipates consumer prices will increase by 2.1 percent next year, a moderation from a previous forecast of a 2.5 percent rise. The odds of a recession have grown this year. But, the Bush administration, Federal Reserve officials and others remain hopeful that one can be avoided.