The Congressional Budget Office estimated that the federal budget deficit will surpass $1.3 trillion in 2010. This deficit amount will be the second largest shortfall in the past 65 years. The updated deficit projection is $71 billion below last year’s total and would be $27 billion lower than March‘s estimate. In 2010 the deficit is expected to be 9.1% of the U.S. gross domestic product. The Congressional Budget Office calls growth in U.S. output as “anemic”. The CBO projects that the economy will grow by 2% from the fourth quarter of 2010 to the fourth quarter of 2011 and that the jobless rate won’t fall back to around 5% until the end of 2014. Congressional budget analysts also estimate that the huge deficit will fall steadily as a share of GDP over the next few years assuming their hypothesis about fiscal policy, including expiring tax-cuts, come to pass. Based on the CBO’s estimate, the deficit would drop to 7% of GDP in 2011, 4.2% of GDP in 2012 and reach as low as 2.5% of GDP in 2014.