CBO Says Stimulus Drove Growth in Q2

Washington, DC, Aug. 25, 2010--The Congressional Budget Office said the federal stimulus plan boosted the economy in the second quarter by as much as 4.5%.

The CBO said the stimulus boosted the economy by between 1.7% and 4.5%, lowered the unemployment rate by between 0.7 percentage points and 1.8 percentage points and increased the number of people employed by between 1.4 million and 3.3 million.

The CBO said the impact from the stimulus on output and employment, however, will gradually diminish.

The CBO also raised the cost of the stimulus plan to $814 billion from $787 billion.