By SPA
Washington : President George W. Bush released his annual economic report Monday, which described the U.S. economy as generally sound, while acknowledging weakness in areas and the need for economic stimulus.
In a brief introduction to the report, Bush told reporters that a $168 billion economic rescue package passed by Congress last week will keep “our economy growing and our people working.”
“Money will be going directly to America – workers and families and individuals,” he said. “It’s going to help deal with the uncertainties in this economy.”
Briefing reporters about the report, the Chairman of the White House Council of Economic Advisors, Edward Lazear, said the United States is not going into a recession.
“I don’t think we are in a recession right now and we are not forecasting a recession,” he said. “We are forecasting slow growth.”
The report did not alter its economic forecasts for this year and next, which it first announced in November. The prediction suggests that the economy will grow by 2.7 percent this year, as measured from the fourth quarter of this year from the fourth quarter of last year. A higher rate of 3 percent is forecast for the following year.
The unemployment rate for this year and next should climb to 4.9 percent, according to the White House’s projections. The jobless rate last year was 4.6 percent.
The report acknowledged the fears of many economists that consumers and businesses will curb their spending, further slowing economic growth.
“The tightening of credit standards raises the possibility that spending by businesses and consumers could be restrained in the future,” the report said. “Declines in household wealth may also limit consumer spending.”
Both Lazear and Bush used the report’s release to once again push Congress to renew the president’s tax cuts – a measure firmly opposed by Democrats. Bush warned that if the tax cuts expire “most of the tax relief that we have delivered over the past seven years will be taken away and 116 million American taxpayers will see their taxes rise by an average of $1,800.”
Bush also renewed his call for Congress to approve free-trade agreements with Colombia, Panama and South Korea, which he said would expand sales opportunities for U.S.
companies, providing “greater access for our exports and supporting good jobs for American workers.”