The federal government has been in an economic emergency for almost a month, and the latest data suggests it’s likely to last for much longer.
The latest Treasury Department economic report shows that the economy grew by just 1.1 percent in the fourth quarter, the smallest rate since the start of the recession in 2009.
The U.S. economy is still expected to shrink by 1.4 percent this year, according to the Commerce Department.
That’s well below the 2.6 percent unemployment rate of the first quarter of this year.
The biggest drag on the economy is the government’s payroll tax cut, which took effect in August and was supposed to help reduce the federal deficit by about $700 billion this year but has had a negative effect on economic activity.
The payroll tax cuts have been a key component of President Donald Trump’s economic agenda, which has seen a surge in the number of Americans signing up for unemployment benefits.
But the tax cuts will end on Sept. 30.
The Treasury report also noted that the federal budget deficit rose to $1.1 trillion in the latest fiscal year, which ended Sept. 25.
The surplus, however, is expected to grow to $2.5 trillion by 2019.
The federal deficit is expected hit $1 trillion this year and will grow to about $3 trillion by 2021.
The White House has promised to balance the budget by 2023.
The deficit has been a constant theme in the presidential campaign.
Trump has proposed eliminating the federal payroll tax and cutting taxes on individuals and corporations to close the budget gap.
The Republican-controlled Congress is expected on Tuesday to pass a tax bill that includes a $1,000 tax increase on people making more than $400,000 a year, though some analysts say that would have a negligible effect on the deficit.
The report also showed that U.N. agencies, including the International Monetary Fund and the World Bank, have cut their forecasts for global growth in the coming years.
The World Bank said last month that global economic growth will be 1.9 percent this decade, down from 3.2 percent in 2017.