The IMF revised its forecast for the growth of the US economy this year


The International Monetary Fund has revised its forecast for US economic growth for 2023 slightly, indicating that a slowing economy could lead to a slight increase in unemployment next year.
Kristalina Georgieva, Managing Director of the IMF, said during a press conference that the new indicators “proved the resilience of the American economy,” expecting real GDP growth in the United States to increase by 1.7% this year, up from the expected 1.6% earlier this year. before slowing to 1% in 2024.
Regarding inflation, Georgieva said that flexible demand and a strong labor market constituted a “double-edged sword” for the US economy, adding that they “of course provided a boost to American households, but they also contributed to more persistent inflation that was originally expected.”
She explained that the Fed’s interest rate would need to “be somewhat higher for a longer period if it is to succeed in returning the inflation level to its long-term target of 2%.”
The international financial institution indicated that the unemployment rate in the United States will rise slightly, “with slowing but strong growth”, pushing it towards an increase to 4.4% by the end of next year.
It should be noted that despite fears of global recession, the US economy succeeded, during the first quarter of this year, in achieving a growth rate of 1.1%, below expectations, which was 2%, without preventing many analysts from expecting the US economy to enter a state of recession. During the middle of 2023.


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