The Bush administration has cut its forecast for 2003 GDP growth but sees a brighter future ahead for the world's largest economy. The new forecast, contained in George Bush's budget presented to Congress today, sees growth of 2.9pc this year, compared to an earlier 3.8pc forecast. "The current recovery appears to be losing momentum," the budget said. However, despite the delay to the recovery, the government forecast growth of up to 3.6pc between 2004 and 2008. The USD2.23 trillion budget, which does not factor in the effects of a possible war with Iraq, also expects a deficit of USD304bn in the current fiscal year to September 2003 - almost triple the USD109bn forecast last July - and USD304bn in fiscal 2004. "A recession and a war we did not choose have led to a return of deficits," Bush said in his introduction to the budget. He added that the budget "meets the challenges posed by three national priorities: winning the war on terrorism, securing the homeland, and generating long-term economic growth". The budget also forecasts that unemployment will average 5.7pc this year - from 5.6pc in July - but decline steadily until it reaches 5.1pc in 2006. //www.fxcentre.com