Trade woes slowing economy as budget deficit climbs, says US budget experts



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Trade woes slowing economy as budget deficit climbs, says US budget experts

On Wednesday, the 21st of August 2019, US congressional budget experts raised alarms over a slowing US economy saying that a heightening of trade barriers including Trump’s tariff war with a majority of United States’ long-time trading partners had been slowing down US economy and axing household earnings alongside wage growth and working hours, suggesting growing grudges in the US congress against US President Donald Trump, a Republican candidate, ahead of a 2020 US presidential election.

Aside from raising red flags over the US economy, the nonpartisan Congressional Budget Office had been quoted saying on Wednesday (August 21st) that United States’ foreign trade policies since early 2018 would decline inflation-adjusted US GDP by 0.3 percent, while the US Congressional Budget office had also predicted that deepening trade wounds in the United States would decline real average household earning by 0.4 percent or $580.

Adding further strains on to the US economy, the Congressional Budget Office also projected a much-deeper federal budget deficit of $960 billion for fiscal year 2019 due to end by September 30th, which was almost entirely prompted by a higher-spending by Trump Administration, while the deficit was expected to top $1 trillion by 2020 and an average $1.2 trillion between 2020-2029.