Wednesday, October 9, 2013

IMF predicts U.S. economic growth to slow due to political havoc

Oct. 8, 2013

The International Monetary Fund on Tuesday cut its growth forecast for the US economy, and warned that Washington’s political paralysis could drag growth down further.

The Fund, in its new World Economic Outlook, said the US economy would grow 1.6 percent this year and accelerate to 2.6 percent in 2014, down respectively 0.1 and 0.2 percentage points from its July forecast.

It said the reduction was due to the impact of the sharp sequester spending cuts instituted by the government earlier this year aimed at trimming the federal deficit.

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