US 'sequester' cuts to hit US, global growth: IMF
Published on Mar 1, 2013 12:00 AM
WASHINGTON (AFP) - The broad US "sequester" spending cuts that take effect beginning on Friday will slow growth in the world's biggest economy and hit the global economy, the International Monetary Fund said on Thursday.
"There will be an impact on global growth," IMF spokesman Bill Murray said.
"We're going to have to reevaluate our growth forecast in the United States and also our other forecasts." Murray emphasised that the US$85 billion (S$105 billion) in US spending cuts, known as sequestration, will be phased in over seven months.
The drastic cuts were mandated after Democrats and Republicans failed to reach an agreement on budget deficit reduction.
To continue reading, log in if you are a subscriber
If you are not a subscriber, you can get instant, unlimited access here