Elon Musk predicts 5% economic boom for US with government efficiency overhaul

Elon Musk has forecasted a significant economic boost for the United States, projecting a 4-5% annual growth in GDP thanks to the operations of the Department of Optimizing Government Efficiency (DOGE).

Speaking at the World Government Summit in Dubai, the head of DOGE claimed that the US economy could experience a substantial increase in real production of goods and services, Caliber.Az reports per foreign media.

He also suggested that government expenditure could be reduced by around 3-4% of GDP, equating to approximately $1 trillion or more.

"The economy has the potential to grow by 4-5%, with government spending cut by 3-4% of GDP. This would amount to around $1 trillion in savings or more. The most significant outcome would be the absence of inflation from 2025 to 2026, which would be remarkable," Musk stated.

According to the World Bank's latest estimates, the US GDP grew by 2.8% in 2024, with projections indicating a 2.3% increase in 2025 and a further 2% in 2026.

To recall, on February 11, President Donald Trump signed an executive order aimed at reducing the federal workforce and advancing the agenda of the newly established Department of Government Efficiency (DOGE).

The order mandates the director of the Office of Management and Budget to propose a plan for downsizing the federal workforce, which includes a policy that agencies may only hire one new employee for every four departures. Agency heads are also instructed to prepare for significant reductions in force (RIFs) and to separate temporary workers and reemployed annuitants from areas likely to be affected by the cuts.

Additionally, the order ties DOGE to federal agencies by requiring consultation between agency leaders and DOGE team leads on career appointment hires. These team leads are tasked with submitting monthly hiring reports to the DOGE Service Administrator, whose identity remains unclear, though Elon Musk is seen as the effective head of the department.

Exempt from these provisions are agencies involved in public safety, immigration enforcement, or law enforcement.

By Aghakazim Guliyev