IMF cuts US growth forecast, warns against 'fiscal cliff'
The International Monetary Fund on Tuesday pared its growth forecast for the US economy and warned that the Obama administration could be slicing the deficit too fast for the weak economy.
It also said the economy was under threat from the pre-programmed "fiscal cliff" combination of sharp spending cuts and tax increases at the year-end, and a worsening of the eurozone crisis.
The IMF estimated 2012 US economic growth at 2.0 percent, down from April's forecast of 2.1 percent, and said even that outlook was at risk from both domestic and international threats.
"It is critical to remove the uncertainty created by the 'fiscal cliff' as well as promptly raise the debt ceiling, pursuing a pace of deficit reduction that does not sap the economic recovery," the fund said in its annual report on the US economy.
The Daily Star/Bangladesh/ 4th July 2012