World Economic outlook - Wells Fargo projects US economic growth 2013 : Wells Fargo projects a moderate, subpar pace of growth for the U.S. economy this year as consumers, businesses, and governments adjust to the "new normal of fiscal constraint.”
Wells Fargo made the prediction in its 2013 Economic Outlook, which blames much of the uncertainty on lawmakers’ decision to not immediately address components of the fiscal cliff earlier in 2012 -- including the expiration of the Bush tax cuts, the Social Security payroll tax and federal funding for extended unemployment benefits.
Real GDP growth also slowed down in the final quarter of 2012 to an annualized rate of 1 percent as the fiscal cliff negotiations caused businesses to put expansion and hiring plans on hold. As a result, growth is expected to get off to a slow start this year. Federal government spending will also contract modestly while elected leaders feel the pressure to rein in budget deficits.
The Wells Fargo report also expects growth to rebound modestly by the middle of the year as the economy moves further away from the fiscal cliff and homebuilding gains momentum. Download Full articel
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