Regional markets are braced for any signs of fallout from the start of US$85 billion (Dh312.2bn) in government spending cuts that threaten to kick off a decade-long wave of belt-tightening that risks curbing economic growth in the United States this year.
The across-the-board cuts, known as sequestration, were intended to be so onerous that neither congress nor the president, Barack Obama, would let them occur and would come up with a plan to replace them. Instead, Democrats and Republicans have deadlocked on an alternative.
Mr Obama insists that any plan must include new tax revenue, but Republicans, led by the house speaker John Boehner, reject that approach. The cuts under the law total $1.2 trillion over nine years. Of that, $85bn comes out of the budget for the remaining seven months of this fiscal year.
Read more: http://www.thenational.ae/thenationalconversation/industry-insights/economics/gulf-markets-on-alert-over-fallout-from-big-us-cuts#ixzz2MSgFzgjY
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