Obama vows to work with Republicans after winning re-election

WASHINGTON // US president Barack Obama said difficult compromises were needed to move the United States forward in a speech after he won a second term in the White House by beating Republican challenger Mitt Romney earlier today.

Speaking to supporters in Chicago, Obama pledged to work with Democratic and Republican leaders to cut the federal deficit, fix the tax code, reform immigration and reduce the nation's dependence on foreign oil.

"The recognition that we have common hopes and dreams won't end all the gridlock or solve all our problems or substitute for the painstaking work of building consensus," Obama said.

The Democratic administration and lawmakers now have less than two months to deal with massive budget cuts and tax hikes that are set to go into effect at the end of the year, known as the fiscal cliff.

With the US economic recovery at stake, Obama and his Democrats will be forced to put aside partisan differences and work with Republicans to find a way to stave off the austerity measures.

Republicans maintained their majority in the House of Representatives and Democrats kept control of the Senate.

"I am looking forward to reaching out and working with leaders of both parties to meet the challenges we can only solve together," Obama said.

The administration now has a second chance to implement plans to create jobs and reduce the federal debt - issues that voters cited as priorities. Obama said he would also talk to Romney about "where we can work together to move this country forward".