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The US real gross domestic product (GDP) growth forecast for 2023 was cut by 20 basis points to 1.2 per cent by Joel Prakken, co-head of US economics at S&P Global Market Intelligence cut his.
The risk the United States may fail to meet all its financial obligations by early June has prompted Prakken to factor in a slight mid-year dip in stock prices that contributes to slower growth over the rest of this year and into 2024, he said.
The organisation also cut its 2024 GDP growth forecast by 90 basis points to 0.9 per cent.
The GDP could also be affected by tightening in credit standards than in the last month due to a potential deterioration in the quality commercial real estate loans, leading to lower investment in non-residential structures, the organisation noted.
Fibre2Fashion News Desk (DS)