US GDP growth hit by government cutbacks

 
Suzie Neuwirth

US GDP grew less than expected during the first quarter of 2013, according to new data from the Department of Commerce.

The 2.4 per cent growth is slightly under the 2.5 per cent forecast by analysts and raises fears that the world’s largest economy is not recovering as well as initially hoped.

Although growth has increased from the previous quarter, government spending cuts had a larger impact than previously thought.

Economists expect growth to slow again in the next three months.