WASHINGTON Feb 28 The International Monetary
Fund warned on Thursday it will likely cut its growth forecasts
for the United States and the global economy if automatic U.S.
spending cuts take effect on Friday.
IMF spokesman William Murray said the IMF would likely shave
the 2013 U.S. growth forecast by at least 0.5 percentage point
if the cuts are fully implemented. The IMF is currently
projecting the U.S. economy will expand 2 percent this year.
He said the United States' biggest trading partners are
likely to be most affected by the impact from the so-called
"We will see what happens on Friday, but everybody is
assuming that sequestration is going to take effect," Murray
told a regular news briefing. "What it means is that we are
going to have to reevaluate our growth forecasts for the United
States and other forecasts," he added.