The Nation : Lower Growth Rate Seen

The Reagan Administration, acknowledging the sharp slowing of the economy in the first half of the year, has lowered its forecast for economic growth for 1985 from 3.9% to 3%, officials said. Even the new forecast assumes the economy will snap back in the second half and grow at a 5% rate, after managing a scant 1% rate in the first six months. Most private forecasters, while expecting the economy to improve, predict the gains will be smaller than those the Administration expects. And if the economy does rebound in coming months, the slower-than-expected growth that has already occurred still will mean about a $15-billion increase in the fiscal 1986 budget deficit compared to what it otherwise would be, the officials said.