The short-term outlook for our budget and economy is stable. But a new report by the Congressional Budget Office paints a bleaker picture for the long-term.

FOX's Malini Wilkes has more from Washington:

It's a relatively rosey picture over the next few years with deficits holding steady at the current level of about three-percent of GDP and a modest growth rate of just-over two-percent.

But in the long-term, growth is expected to decline, while annual deficits rise significantly:

(Hall) "We're on a difficult path with the deficit and the debt."

Keith Hall is director of the Congressional Budget Office. He says the accumulated national debt could reach record levels, unless Congress takes action:

(Hall) "The sooner they of course they try to deal with it early on the less trouble you have later."

The projections are based on current laws and don't take account of possible policy changes under President Trump.

In Washington, Malini Wilkes, FOX News.

Follow Malini Wilkes on Twitter: @NewsMalini