Forex Flash: We see US GDP growth between 1.8%-2.2%

Forex Flash: We see US GDP growth between 1.8%-2.2%

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Forex Flash: We see US GDP growth between 1.8%-2.2% - BMO

FITITOL--> FXstreet.com (San Francisco) - U.S. economic momentum is waning, due to technical reasons, but mostly due to fundamentals, says BMO Capital Markets, citing headwinds from the euro crisis and U.S. “fiscal cliff” fears.

“We look for quarterly real GDP growth to drift sideways in a slightly sub-par 1.8%-to-2.2% range for the rest of this year,” Says BMO. “Next year, we’re assuming about half of the more than $500 billion in fiscal measures slated to hit the economy will be allowed to happen (after probably being postponed until the new Congress is in place). This should slice 2013 Q1 growth to barely above 1% before finally rebounding to above potential growth during 2013 H2.”