Washington — Economy, deficit forecasts improved by White House
The Reagan administration is now predicting that the economy and the federal budget deficit will both be in slightly better shape than it expected earlier. The revised forecasts came in a legally required April budget update.
The administration now expects that the nation's economy will grow 5.0 percent between the final quarter of 1983 and the final quarter of 1984. In budget documents released Feb. 1, economic growth was projected at 4.5 percent.
The deficit in fiscal 1984 is now slated to be $177.8 billion, down $5.9 billion. The deficit for fiscal 1985 is projected at $179.0 billion, $1.4 billion less than earlier projected.
The deficits projected for budget years 1986 through 1989 are higher than in the February budget by relatively small amounts.