Defense cuts hamper growth
Published 5:00 am Saturday, April 27, 2013
WASHINGTON — A steep slowdown in defense spending tied to the end of the wars in Iraq and Afghanistan is undercutting the country’s economic recovery, new government data released Friday revealed.
The report showed gross domestic product grew at an annual rate of 2.5 percent during the first three months of the year — significantly slower than most economists had expected. The culprit? A surprising 11.5 percent annualized drop-off in military spending.