The International Monetary Fund (IMF) slightly raised its forecast for US economic growth for this year. However, experts from the United Nations point out that interest rates in the United States are likely to remain high for a longer period in order to curb inflation. The fund also urges Democrats and Republicans in Washington to quickly reach an agreement on the US government’s debt ceiling.
May 26, 2023
The International Monetary Fund now expects growth of 1.7 percent for this year, compared to a previous forecast in April of 1.6 percent. “The US economy has proven its resilience,” IMF chief Kristalina Georgieva said at a news conference shortly after the updated figures were released. Next year, the growth of the world’s largest economy is likely to slow to 1%. In April, an increase of 1.1 percent was still assumed. The slowdown is also expected to lead to a slight increase in unemployment in 2024, according to the International Monetary Fund.
A deal between Democrats and Republicans on the necessary increase in the debt ceiling is still pending. Republican House Speaker Kevin McCarthy said over the upcoming long weekend that he would continue to work toward a deal. If the debt ceiling is not raised, the US government will officially run out of money around June 1. This could cause major financial turmoil all over the world.
“Travel enthusiast. Alcohol lover. Friendly entrepreneur. Coffeeaholic. Award-winning writer.”