Chairman Yarmuth on CBO’S Updated Economic Outlook: “Today’s CBO report confirms again that the American Rescue Plan is working”
WASHINGTON, D.C.— Today, Kentucky Representative John Yarmuth, Chair of the House Budget Committee, issued a statement following an updated report from the Congressional Budget Office (CBO) which highlighted the positive effects of the American Rescue Plan on America’s economic outlook and recovery.
“Today’s CBO report confirms again that the American Rescue Plan is working, our economy is projected to grow faster than at any time in the last 40 years, and we are steadily building back – but we can’t stop here,” said Chairman Yarmuth. “With a historic forecast of 7.4% growth in GDP for 2021, we must seize the opportunity to build on this economic momentum – especially while interest rates are so low – and make long-overdue investments in the American people, our communities, and our economic outlook.
“With the transformational investments in job creation, child care, infrastructure, tackling the climate crisis, and more included in the American Jobs Plan and the American Families Plan, we will emerge from these past 16 months of crisis a stronger, more competitive, and more equitable nation. I look forward to working with the Administration and my colleagues to enact legislation that will deliver these critical priorities.”
The reports estimates a 10-year projection of America’s economy and includes the following highlights:
- CBO projects that real GDP growth will reach 7.4 percent in 2021, a historic level of growth unseen since the 1980s.
- Revenues are projected to increase to 17 percent of GDP in 2021, up from 16 percent in the previous forecast, and over the next decade, revenues will be 5 percent higher than what was previously forecasted.
- The deficit in 2021 is projected to be 13.4 percent of GDP. However, CBO projects that the deficit will be 1 percent lower over the decade than original estimates because the cost of the American Rescue Plan is more than offset by revised economic and technical assumptions.
- CBO projects a transitory bump of inflation in 2021, with a return to normal levels for the rest of the decade.
The American Rescue Plan, sponsored and spearheaded in the House by Chairman Yarmuth, provided critical COVID relief and economic support to the American people while addressing the twin health and economic crises facing the United States.
As Chair of the House Budget Committee, Chairman Yarmuth is at the center of negotiations to enact the visionary and transformational policies included in the American Families Plan and the Americans Jobs Plan to create millions of good-paying jobs and build on the successes of the American Rescue Plan.