Fiscal cliff deal just a patch: analyst

A senior financial analyst says even if US politicians pass a deal to prevent the US economy going over the so-called fiscal cliff, lawmakers will still have a lot of work to do to put the country's finances back in order.

John Noonan from Thomson Reuters says the latest deal is just a stop gap measure.

"There's a perfect storm brewing at the end of February, beginning of March, when the debt ceiling will have to be dealt with and will have to be extended at the same time [that] they're going to seriously have to address spending cuts to entitlement programs and revenue raising that seriously deals with the fiscal crisis the US faces," he warned.

"This deal does not do that - it's just a patch." Mr Noonan says until US politicians come up with a more comprehensive plan, uncertainty will hang over the US economy.

"Business spending will be curtailed, which means higher unemployment in the US," he predicted.

"Consumer spending will be impacted negatively, so that is what is going to happen at home in the US and, meanwhile, the rest of the world is still dependent on US growth and the US economy along with China to see us through 2013."

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