Sat. Mar 2nd, 2024

GDP growth slashed to 2.3% this year, according to the IMF

The International Monetary Fund (IMF) on Tuesday cut its growth projections for the US economy this year and next, citing recession risks. The nation’s GDP is now expected to expand by 2.3% this year, down from last month’s prediction of 2.9%.

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

Unemployment in the country is expected to be at 3.7% in 2022, versus the previously projected 3.2%. The jobless rate in 2023 is now seen at 4.6% but is expected to exceed 5% in both 2024 and 2025. Inflation was forecast to reach 6.6% this year but drop 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 expeditiously slow price growth without precipitating a recession,” the IMF’s executive directors said. Avoiding a recession in the US “is becoming increasingly challenging,” they added.

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