Even if We Avoid the Fiscal Cliff It Will Drag Down Growth
Posted at 12:45 p.m. on Nov. 20, 2012
Cullen Roche highlights a report by analysts at Nomura predicting that the US will see slower growth in 2013 due to the “fiscal cliff” even if policymakers find a solution before next year.
“In the US, even if the fiscal cliff is smoothly traversed, our US research team notes that current policies will see fiscal policy reduce growth by 1 percentage point (pp) next year (if we go over the fiscal cliff permanently, then clearly a deep, double-dip recession looms).”
