Last October, before the Omicron variant of Covid-19 appeared and long before Russia’s invasion of Ukraine, which caused a sharp rise in fuel and food prices, the IMF forecast 5.2% growth in the US for 2022.
The International Monetary Fund has revised downwards its US growth forecast amid a sharp rise in interest rates by the Federal Reserve (Fed) but says the US will avoid a recession “for a while”.
In the annual assessment of US economic policy, the IMF estimates that the country’s GDP will grow by 2.9% in 2022, instead of 3.7%, which was forecast in April. For 2023, the Fund forecasts that growth will rise to 1.7% instead of 2.3% and in 2024 by 0.8%.
Last October, before the Omicron variant of Covid-19 appeared and long before Russia’s invasion of Ukraine, which caused a sharp rise in fuel and food prices, the IMF forecast 5.2% growth in the US for 2022.
“We know there is a long way to go to avoid a recession in the United States,” said Kristalina Georgieva, the fund’s director general.
“The economy is still recovering from the pandemic and is suffering from severe shocks due to the Russian invasion and the looting in China. “Further negative shocks would inevitably make the situation more difficult,” Georgieva added.
The IMF chief said that from her discussions with Finance Minister Janet Glenn and Fed Chairman Jerome Powell, “there was no doubt that they were committed to reducing inflation.”
According to the Fed, inflation in the US is three times higher than the 2% target set by the Federal Reserve.
Check out the news feed and stay up to date with the latest news.
