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1/24/13

Investors fear U.S. fiscal woes not European and say US poses biggest risk to global economy - by Jim Puzzanghera

Investors around the world say the fiscal woes of the U.S. -- highlighted by the ongoing fight over the debt limit -- pose the biggest risk to the global economy this year, according to poll results released Wednesday.

More than a third of the respondents in the Bloomberg Global Poll -- 36% -- said the troubles in Washington addressing the huge U.S. budget deficit were their biggest concern. That topped the European debt crisis at 29% and the slowing of China's economy at 15%.

Although the poll found the divisive political atmosphere was chilling investment in the U.S., the nation still easily ranked first as the best place to invest this year.

The U.S. was chosen by 38% of the 921 randomly selected investors, who could chose one or two markets as providing the best opportunities, with China at 31% and the European Union at 22%.

The likely reason: A majority of investors -- 53% -- said the U.S. economy was improving, compared with 32% for China and 16% for the Eurozone.
Overall, 35% said the global economy was improving.

Read more: Investors say U.S. fiscal woes pose biggest risk to global economy - latimes.com

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