White House Lowers Economic Estimates

Washington, DC, Sept. 2, 2011 -- White House economists lowered their estimates for economic growth and employment.

The administration's budget office forecast Thursday that the unemployment rate won't fall below 6% until 2017, two years later than it predicted in February.

The Office of Management and Budget also lowered its estimates for annual GDP growth by roughly a percentage point for this year, next year and 2013. Its forecasts for 2015 and 2016 were modified slightly higher.

OMB said it now expects the economy to grow at a 1.7% rate this year, down from its 2.7% forecast in February.

Growth is expected to be 2.6% next year and 3.5% in 2013.

However, the office is not forecasting another recession.

OMB also predicted that unemployment for 2011 will stay at 9.1%.