Axel Weber: Shutdown Taking Toll on U.S. Growth

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Oct. 10 (Bloomberg) -- Axel Weber, chairman at UBS, discusses the impact of the government shutdown on U.S. economic growth. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

Impact of the u.s. gets past october 17 and they do not have a deal to raise the debt ceiling?

It is very likely that they will do another sort of deal like in january where there will be a suspension of the debt ceiling and then they will come together and try to talk more fundamental reforms.

Both parties are loggerheads over where to go, but for me, the real issue is every week that we have the government shutdown continue, it will take something out of growth for this year.

It is early in the quarter, so our estimate is .2% could easily be every week from first quarter growth, so the longer this takes, the more critical it becomes paired an economic team in the u.s. at ubs has been award winning bloomberg with their optimism.

That is where we work your wife i don't hear a lot of optimism.

Who is going to become the global growth injureengine?

I think europe will continue to move on average.

There will be growth just under 1%. it is a deeply divided growth between a core that will grow stronger than 1% and a periphery that is just coming out of recession.

A strong divide among europe's core and periphery.

I think growth in the u.s. will be around 3% next year.

It is around 1.6% this year.

That is largely due to some corrections that had been done early in the year.

From a u.s. perspective, we have not changed our pictures that the u.s. has taken a lead, however this fourth-quarter issue of the debt ceiling and of the government shutdown what is take a toll on growth every week

This text has been automatically generated. It may not be 100% accurate.


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