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U.S. budget deficit will exceed $1.2 trillion

According to the U.S. Congress Budget Office, U.S. budget deficit in fiscal year 2009 will reach record size – $1186 trillion, announced January 7, Reuters.

Office predicts that the budget deficit reduced to $703 billion in 2010, which will begin on 1 October 2009, as the recession in the U.S. starts to melt.

real gaps in the budget may be significantly higher in both years, as Washington is preparing to boost the economy of expenditure, which for two years will be about $775 billion

According to the Office, the U.S. budget deficit will be significant at least until 2019.

It also predicts that in 2009 the U.S. GDP will decrease by 2.2%, which is the biggest decline for a calendar year since 1946 year, when the size of the economy decreased by 11%. In 2010, the expected economic growth to 1,5%.

Rising unemployment is projected to continue, its average value will be 8.3% in 2009 and 9% in 2010.