US growth forecast cut

The International Monetary Fund (IMF) on Tuesday lowered its growth forecasts for the US economy this year and next, citing recession risks. The country’s GDP is now expected to grow by 2.3% this year, compared to last month’s forecast of 2.9%.

According to the report, the economy grew by 5.7% in 2021.

Unemployment in the country is expected to be 3.7% in 2022, up from the 3.2% previously forecast. The unemployment rate in 2023 is currently 4.6% but is expected to be above 5% in both 2024 and 2025. Inflation is expected to reach 6.6% this year but fall to 1.9% next year.

The IMF pointed out that global factors such as the crisis in Ukraine, the coronavirus pandemic, and related restrictions will affect US macroeconomic indicators.

Washington’s “Policy priority must be to slow down price growth quickly without triggering a recession,” said the Executive Directors of the IMF. Avoiding a US recession “is becoming more and more demanding”, they added.