May 9 (Reuters) - S&P Global Market Intelligence lowered
its forecast for U.S. real economic growth for 2023 and 2024
after warning of risks from country's debt limit default and
banks tightening credit standards.
Joel Prakken, co-head of US Economics at S&P Global Market
Intelligence cut his U.S. real gross domestic product (GDP)
growth forecast for 2023 by 20 basis points to 1.2%.
Prakken said that the risk the United States may fail to
meet all its financial obligations by early June has prompted
him 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.
The agency also cut its 2024 GDP growth forecast by 90 basis
points to 0.9%.
U.S. President Joe Biden and top Republican lawmakers will
declare their positions face to face on Tuesday on raising the
$31.4 trillion U.S. debt ceiling, with an unprecedented default
looming in three weeks if Congress does not act.
S&P added that the GDP could also take a hit from 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 nonresidential structures.
S&P Global Market Intelligence is a separately managed
division of S&P Global and not related to S&P Global Ratings.
(Reporting by Aniruddha Ghosh in Bengaluru; Editing by Shailesh
Kuber)
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