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Analysts: Debt crisis to hurt US economy

07-29-2011 14:51 BJT

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Analysts believe the US economy will probably take a hit, no matter how the debt crisis unfolds.

Failing to raise the federal borrowing limit will force the US government to slash spending immediately and possibly cause a default.

Some economists feel that could throw the economy back into recession. But if Washington reaches a deal and does raise the limit, it will probably include long-term spending cuts. That would mean an end to government stimulus at a time of feeble recovery.

.S. House Speaker John Boehner (R) attends a news conference on debt ceiling at Capitol Hill as Republican and Democratic lawmakers haven't achieved a debt limit negotiation compromise in Washington D.C., capital of the United States, July 28, 2011. (Xinhua/Zhang Jun)

Some businesses are holding off on hiring or expanding because of the uncertainty created by the crisis. The country's economic growth has already slowed to its weakest point since the recession ended two years ago.

Editor:Li Wanran |Source: CNTV.CN

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