S&P sees “Significant Downside Risks” with U.S. Growth

Standard & Poor’s (S&P) credit ratings agency has lowered its U.S. growth forecast warning of “significant downside risks” from federal spending cuts.

“We’ve lowered our forecast for U.S. GDP growth in light of the additional sequester spending cuts in 2014 as well as the potential for another political standoff in Washington after the October government shutdown,” S&P said on Monday, ahead of the bipartisan budget deal struck in Washington.

“We now expect the world’s biggest economy to expand 2.6 percent next year, down from our forecast of 3.1 percent at last quarter’s Credit Conditions Committee meeting,” it added.


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