After victory, Obama faces fresh challenges on economy

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Washington, Nov 7: Barack Obama was re-elected as US President on Tuesday, Nov 6. Celebrations are on at Obama camp by his supporters. But the road ahead certainly won't be a smooth one for Obama. Analysts say Obama faces several challenges in his second-term as US President. The most important one is on economy.

Is Obama well-equipped to bring back US economy to its earlier glory? Will Obama's second term help to end US debt completely? Will Obama be able to give jobs to all Americans? Will US be able to come over from recession completely under Obama's Presidency?

These are some of the most pertinent questions Obama and his team are facing currently.

Experts say US president faces a fresh challenge confronting the "fiscal cliff," a mix of tax increases and spending cuts due to extract some $600 billion from the economy barring a deal with Congress.

At stake are two separate issues - individual tax cuts due to expire at year's end and tens of billions of dollars in across-the-board federal spending cuts due to kick in the day after New Year's Day.

Failure to prevent a dive off the cliff could rattle US markets and push the US economy into a recession, which could have global implications. How Obama fares with a familiar set of challenges - most notably a Republican-controlled House of Representatives - could colour his second term.

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