US economy grows 2% in Q2, down from 3%; biennial state revenue growth projected to drop from 11.6% to 6.9%.

More evidence of the economic slowdown. The U.S. economy grew at just 2 percent in the second quarter of 2019.

The U.S. economy grew at a modest 2% annual rate in the second quarter, a pace sharply lower than the 3%-plus growth rates seen over the past year. Many analysts believe growth will slow further in coming quarters as global weakness and rising trade tensions exert a toll…

Zandi is forecasting that GDP growth this year will slow to 2.3% and then slow further to 1.6% next year, but that is based on no escalation in the trade war with China.

Further, in yesterday’s post on the the revenue forecast we did not point out the projected decline in revenue growth from the 2019-2021 biennium to 2021-23. Kriss Sjoblom provided that information in a Washington Research Council post.

From 2017–19 to 2019–21, the forecasted NGFO growth rate is 11.6 percent; from 2019–21 to 2021–23, the forecasted growth rate is 6.9 percent.

More reason for lawmakers to exercise fiscal restraint in the 2020 legislative session.