Arab Today, arab today sp us economy can weather short sequester storm
Last Updated : GMT 18:42:31
Arab Today, arab today
Arab Today, arab today

S&P: US economy can weather short sequester storm

Arab Today, arab today

Arab Today, arab today S&P: US economy can weather short sequester storm

Washington - AFP

The United States economy can weather the drastic spending cuts known as the sequester if they are short-lived, ratings firm Standard & Poor\'s said Friday. S&P said the cuts, as well as a potential government shutdown at the end of March due to the budget fight, \"could have far-reaching, although probably shallow, effects on the US economy and its prospects for a strengthening recovery.\" The across-the-board $85 billion in spending cuts over the next seven months were scheduled to take effect Friday unless President Barack Obama and Republican lawmakers struck an unlikely last-ditch deal. The entrenched political gridlock in Washington over budget deficit reduction and the uncertainty it has generated remained the biggest threats to the US economic recovery, S&P said. The ratings firm said it had long assumed that the sequester cuts would take place, but it believed they would be temporary and replaced in the second quarter by a long-term package of spending cuts and tax increases. \"If this proves true, we think the sequester would still likely have only a mild downside effect on GDP growth this year,\" the company said. \"If sequestration were to persist for the rest of the year, which we view as unlikely, we would trim our 2013 growth forecast by about half a percentage point.\" The Obama administration also estimated the economy, which barely grew in the 2012 fourth quarter, would take a 0.5 percentage point hit in 2013 if the cuts are fully implemented. S&P projected if the sequester was not modified, it would bring annual growth down to about 2.0 percent, below its current forecast of 2.7 percent. It estimated the risk of the United States falling back into recession between 10 percent and 15 percent, lower than the 15-20 percent chance the economy will make a quick turnaround. S&P expressed concern about the March 27 expiry of government funding under the stopgap \"continuing resolution\", a substitute for a full formal budget. If Congress fails to extend the current continuing resolution, the government would be forced to shut down services it deemed nonessential. S&P calculated that each week of a shutdown would trim 0.2 percentage points from growth. \"The good news is that if Washington works through a deal fairly quickly, the underlying momentum in the US economy would help it withstand these drags on growth,\" it said. S&P made no mention of another US credit rating downgrade in the statement. In August 2011, it stripped the United States of its coveted AAA rating, citing the bitter political battle over raising the country\'s borrowing limit that was pushing the world\'s biggest economy to the brink of default. The agreement in Congress to raise the debt ceiling spawned the sequester spending cuts, designed to be so drastic they would push the Democrats and Republicans to find a budget deficit-reduction compromise to avert them.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today sp us economy can weather short sequester storm Arab Today, arab today sp us economy can weather short sequester storm

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Egyptian tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Egyptian tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models

GMT 05:20 2017 Thursday ,23 February

WTO ratifies first multilateral trade deal

GMT 21:36 2017 Wednesday ,22 February

Opec needs to prolong cuts to eliminate surplus

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday