CBO Projections for The Next Ten Years

The latest CBO ten-year outlook predicts that real GDP is projected to return to its pre-pandemic level in mid-2021. Inflation will rise gradually over the next few years and will eclipse 2% after 2023, as the Federal Reserve maintains low-interest rates and continues to purchase long-term securities. Unfortunately, the number of people employed is not projected to return to its pre-pandemic level until 2024. (CBO)

Real GDP expands rapidly over the coming year, reaching its previous peak in mid-2021 and surpassing its potential level in early 2025. The annual growth of real GDP averages 2.6 percent during the five-year period, exceeding the 1.9 percent growth rate of real potential GDP