New York City faces a “deep and protracted” downturn and potential changes to the financial sector that could drive down profits and future tax revenue, Ronnie Lowenstein, director of the New York City Independent Budget Office, said Monday.

“Just six months ago, New York City appeared to have dodged the worst of the economic problems plaguing much of the country,” she said, according to prepared testimony. “We now expect the city economy to contract more sharply and recover more slowly than the U.S. as a whole.”

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