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The IMF projects that the U.S. economy will grow 1.7 percent in 2013, the same as in 2012 and 0.2 percentage points lower than forecast in April. In 2014, U.S. growth is expected to be 2.7 percent, down from 2.9 percent. The slower growth, however, “is not particularly worrisome,” said Blanchard, attributing it to the “stronger than desirable fiscal consolidation,” referring to the U.S. government’s mandatory budget cuts known as sequestration.
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