WASHINGTON (Reuters) – A nationwide business shutdown and surge in U.S. government spending will nearly quadruple the federal deficit to a record $3.7 trillion this fiscal year as the country combats the coronavirus pandemic, congressional forecasters said on Friday.
FILE PHOTO: A bicyclist rides through Times Square during evening rush hour, during the outbreak of the coronavirus disease (COVID-19) in New York City, New York, U.S., April 15, 2020. REUTERS/Bryan R Smith
U.S. gross domestic product will plunge by nearly 40% on an annualized basis in the second quarter, according to the nonpartisan Congressional Budget Office. But the CBO forecast an economic resurgence in the second half of the year, and said unemployment would crest at 16% but remain in double digits throughout 2021.
The CBO report illustrated the fiscal pressures lawmakers in Congress face as they prepare