Obama budget office cuts 2014 deficit estimate to $583 billion

The Obama administration lowered its 2014 deficit forecast to $583 billion, the smallest in five years, and projected slower economic growth than seen four months ago.

In its mid-session budget update, the White House Office of Management and Budget projected this year’s deficit will be $66 billion less than its estimate on March 4.

The shortfall is estimated at $525 billion next year, compared with $564 billion expected in early March

The administration said it expects the U.S. economy to grow 2.4 percent this year, down from 3.1 percent seen in March, with a 3.5 percent increase next year.

The median forecast of 89 analysts surveyed by Bloomberg is for a 1.7 percent gain in the economy for all of 2014, and a 3 percent increase in 2015.

This story was originally published July 11, 2014 at 1:56 PM with the headline "Obama budget office cuts 2014 deficit estimate to $583 billion."