The budget office predicts the economy will grow at a rate of 1.6% this year and will rebound to a 2.2% growth rate next year. That's a half percentage point more than predicted by the widely cited "blue chip" consensus of leading economists. The administration also sees inflation averaging 3.8% this year, but easing to 2.3% next year - better than the 3% seen by the blue chip panel.
"The nation's economy has continued to expand and remains fundamentally resilient," said the budget office report.
A $482 billion deficit, however, would easily surpass the record deficit of $413 billion set in 2004.
The new figure actually underestimates the deficit, since it leaves out about $80 billion in war costs. In a break from tradition - and in violation of new mandates from Congress - the White House did not include its full estimate of war costs.
