White House Predicts 3.4% Economic Growth in 2006

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he White House Thursday predicted that the U.S. economy would expand by 3.4% next year and would record a growth rate of 3.5% for 2005, news services reported.

White House spokesman Scott McClellan released the forecast, which will become the basis for the administration's budget, Reuters reported.

He said the 3.5% projection for 2005 marked a 0.1% upward revision from a mid-year prediction the administration gave in June, Reuters said.

The release of the forecast followed a report on Wednesday from the Commerce Depart-ment showing U.S. economic growth in the third quarter was revised up to a brisk annual rate of 4.3%, compared to a previously reported 3.8% pace. (Click here for previous coverage.)

The Bush administration has been eager to highlight reports such as the recent GDP data, Reuters said. The president is scheduled to travel on Monday to North Carolina to deliver a speech on the economy.