The International Monetary Fund (IMF) has lowered its growth expectations for the US economy for the second time in a short time.
In addition, the fund’s accountants warn that avoiding a recession is becoming “an increasing challenge” for the world’s largest economy.
Like the Netherlands, for example, the United States is feeling the economic impact of the war in Ukraine and the disruptions of supply chains due to corona lockdowns in Asia. As a result, US inflation has risen sharply and the Federal Reserve is now pursuing an aggressive interest rate policy to halt the price increases.
Last month, the situation prompted the IMF to lower its growth forecast for this year from 3.7 to 2.9 percent. Now, the fund’s experts believe the US economy will grow only 2.3 percent this year, according to a new Article 4 report on the US. At the same time, estimates for unemployment up to 2025 have been raised somewhat.
The IMF has itself given no reason for further lowering its growth forecast. But the new forecast comes in the wake of US government macroeconomic data released in late June. It turned out that consumer spending in the US in May showed a decline for the first time this year. The spending of previous months was also adjusted downwards at that time.