In it, but not of it. TPM DC
The revised figures "reflect the substantial amount of economic turbulence over the past two months," OMB says, triggered by the European debt crisis, the earthquake in Japan, congressional brinkmanship over the debt ceiling among others. They also take into account the fact that GDP growth in the first half of fiscal year 2011 turned out to be significantly lower than originally thought.
Despite these and other setbacks, "we are not forecasting a double-dip recession," Katharine Abraham, a member of Obama's Council of Economic Advisers, told reporters Thursday.
The report does not incorporate the impact of Obama's yet-to-be-unveiled jobs plan which, if enacted, would likely alter near-term unemployment and fiscal figures.
Thus, the fiscal figures are improving much faster than the broader economic ones. "The deficit for 2011 is now expected to be $1.316 trillion, down $329 billion from the deficit of $1.645 trillion deficit estimated in February," the report says.
Read the entire review below.