OPEC Slices US Growth Forecasts, Warns on Budget Gridlock

on October 11, 2013 at 2:00 PM

OPEC Summit

By Kiran Moodley

The Organization of the Petroleum Exporting Countries (OPEC) trimmed its forecast for U.S. growth in 2013, warning that the ongoing budget impasse in Washington could damage the recovery.

The group cut its forecast from GDP growth of 1.7 percent to a 1.6 percent expansion for this year.

While there was a healthy momentum to the U.S. recovery in recent months, the government shutdown, now in its tenth day, “could hamper the U.S. recovery and, if left unresolved, could potentially impact the global economy.”

Even an eventual resolution which postponed the discussion for a few months would merely prolong the uncertainty and could create another drag on the still fragile recovery, OPEC said.

You can read the rest of this article at CNBC’s website.

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