White House: Fastest economic growth in a decade in 2016

The White House is projecting 2.6 percent growth in the U.S. economy this year, a pace that would be the strongest of Barack Obama’s presidency.

The GDP forecast reflects a “solid pace” in consumer spending as well as savings from cheaper oil and gas prices, Chairman of the Council of Economic Advisers Jason Furman told reporters Tuesday. He also highlighted the increased growth in consumer sentiment.

{mosads}Still, Furman said the economy will continue to “face significant headwinds on a number of dimensions,” particularly the slower pace of foreign demand.

Reaching such a strong figure in 2016 would mean that the economy is able to overcome a global financial sell-off amid falling energy prices and questions about China’s expansion.

That 2.6 growth would also continue into 2017, according to the president’s budget proposal released Tuesday. That’s higher than GDP growth in 2015, which was 2.4 percent. 

It would also be higher than the average projection from the Federal Reserve, which estimated that growth would be between 2 percent and 2.3 percent in 2017.

The Obama administration has touted its economic record throughout its unveiling of this week’s budget proposal, specifically pointing to strong job growth and historically lowest rates of unemployment.