Washington:
White House officials have decided not to release updated economic projections
this summer, breaking from precedent as the US economy was on track to a deep
recession due to the ongoing COVID-19 pandemic, according to media reports.
In a report on Thursday citing informed sources, The Washington Post said that the decision had been made because "the novel coronavirus is causing extreme volatility in the US economy, making it difficult to model economic trends", reports Xinhua news agency. The White House unveils a Federal budget proposal every February and then typically provides a "mid-session review" in July or August with updated projections on economic trends such as unemployment, inflation and economic growth, according to the Post.
However, former White House and Federal government economists criticized the move, suggesting the White House economic team did not want to commit to a prediction about the state of the economy that could undermine President Donald Trump's re-election chances, according to The Hill political website.
US economy contracted at an annual rate of 5.0 per cent in the first quarter, according to revised data from the Commerce Department released on Thursday. That figure, however, still doesn't fully capture COVID-19's economic damage, analysts say.
While White House officials have expressed optimism that the economy will rebound in the second half of the year, economists and public health experts have warned that a hasty reopening of the economy could trigger a second wave of infections, which could reverse the economic recovery. (IANS)
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