Forex Flash: 2013 to see slow start in the US – RBC

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FXstreet.com (Barcelona) - Dawn Desjardins, Economist at the Royal Bank of Canada believes that despite the strife, she expects US policy makers to come to some form of compromise on fiscal compromise that limits the direct hit to the economy in 2013 to just over 1 percentage point.

She notes that this is much less than the potential damage that current legislation implies. Her forecast factors in fiscal restraint, with the biggest drag likely to occur early in 2013 when payroll taxes and income taxes on high earners increase. She feels that the scenario suggests that consumption will remain modest early next year due to the reduction in disposable income while business investment picks up given the reduced likelihood that the US economy is heading back into recession.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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