Aug. 25 (Bloomberg) -- U.S. unemployment will surge to 10percent this year and the budget deficit will be $1.5 trillionnext year, both higher than previous Obama administrationforecasts because of a recession that was deeper and longer thanexpected, White House budget chief Peter Orszag said.
The Office of Management and Budget forecasts that the U.S.economy will shrink 2.8 percent this year, worse than the 1.2percent contraction the OMB projected in May. For next year, thebudget office said the gross domestic product will grow 2.0percent, less than the 3.2 percent expected in May. By 2011, theeconomy would be well on its way to recovery, growing at a 3.8percent annual rate, according to the administration’s mid-yeareconomic review, released this morning.