News in Brief

US growth forecast cut to 2% by IMF

The International Monetary Fund (IMF) pared its growth forecast for the US economy yesterday and warned that the President Barack Obama’s administration could be slicing the deficit too fast for the weak economy. It also said the economy was under threat from the pre-programmed “fiscal cliff” combination of sharp spending cuts and tax increases at the year-end, and a worsening of the euro zone crisis. The IMF estimated US economic growth for this year at a “tepid” 2 percent, down from April’s forecast of 2.1 percent, and said even that outlook was at risk from both domestic and international threats. “It is critical to remove the uncertainty created by the ‘fiscal cliff’ as well as promptly raise the debt ceiling, pursuing a pace of deficit reduction that does not sap the economic recovery,” the fund said in its annual report on the US economy. The fiscal cliff is the result of Congress’s failure to agree on a deficit reduction plan, resulting in mandated tax increases and spending cuts to take effect by January 1 next year. Congress is deadlocked over how to avoid the mandated measures, and the impasse is not expected to lift before the November presidential election. The IMF warned that leaving the measures to take effect could force a contraction early next year and “significant negative repercussions on an already fragile world economy.” – Sapa-AFP

Maweni is BMF’s managing director

Business executive Nicholas Darius Maweni has been appointed the new managing director of the Black Management Forum (BMF). “Maweni was the most senior South African black executive in the leadership team of IBM Africa,” BMF spokesman Nomcebo Ngema said yesterday. He has over 14 years of corporate experience and his appointment is effective immediately. Maweni served as the group marketing director of Crossroads Distribution in Africa. – Sapa