US unemployment rate may reach 14 percent in April-June period (Representational)
Washington:
The US economy is expected to contract by double digits as unemployment surges, while the federal deficit is seen exploding to $3.7 trillion in 2020, the Congressional Budget Office said Friday.
US GDP in the April-June period is forecast to decline by 12 percent while the jobless rate reaches 14 percent as a result of the widespread lockdowns to contain the coronavirus pandemic, the independent CBO said.
The deficit estimate is more than triple the CBO's prior forecast last month.
CBO warned that the "challenges in the economy and the labor market are expected to persist for some time."
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