April 18, 2018
CBO Outlook Projects Increase in U.S. Trade Deficit
The American Action Forum’s Jacqueline Varas examines the Congressional Budget Offices’s projections for the trade balance in its newly released Budget and Economic Outlook. See excerpt below:
“The latest Budget Outlook shows that the TCJA is expected to have a positive impact on economic growth, as growth in actual GDP is projected to outpace growth in potential GDP. This will increase aggregate demand, inbound investment, and the demand for imports. A natural result will be for the trade deficit to rise.”
Click here to read the full analysis.