Barack Obama

Regulators Anticipate Prolonged Recession, Warn of Deflation in 2009 

The year-old recession will continue “well into 2009” before beginning a slow recovery in 2010, according to a budget and economic outlook published Wednesday by the Congressional Budget Office (CBO). Among other bleak forecasts was a marked contraction in 2009 with real gross domestic product declining 2.2 percent and gaining back only 1.5 percent in 2010. The CBO also said it expects inflation to decline to only 0.1 percent in 2009 and for unemployment to exceed 9 percent early in 2010.