US state budgets bracing for future uncertainties: Fitch

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State budgets in the US are bracing for macroeconomic uncertainties ahead, according to a report released by Fitch Ratings on Monday.

The global rating agency said slower economic growth and rising inflation pose some downside risks for American states.

The individual state budgets were drawn up in light of potential economic and geopolitical headwinds, it added.

Although the US’ gross domestic product grew 5.7% in 2021, Fitch said it expects economic growth to slow sharply to 2.9% in 2022, and then further slow to 1.5% in 2023 due to rapidly rising interest rates.—AA

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