November 7, 2013
An important factor slowing spending on services in the third quarter was continued restraint in health care spending. Real spending grew at just a 0.9 percent annual rate in the quarter. Measured as a share of nominal GDP, spending on health care services has actually fallen slightly over the last year. If this trend continues, it will eliminate most of the long-term budget shortfall when the Congressional Budget Office incorporates it into its projections.
For more, see the latest GDP Byte.