IMF slashes U.S. growth forecast, sees 'narrowing path' to avoid recession

Reuters via Yahoo ^ | June 24, 2022 | By David Lawder and Andrea Shalal

[Oldeconomybuyer]

WASHINGTON (Reuters) -The International Monetary Fund on Friday slashed its U.S. economic growth forecast as aggressive Federal Reserve interest rate hikes cool demand but predicted that the United States would "narrowly" avoid a recession.

In an annual assessment of U.S. economic policies, the IMF said it now expects U.S. Gross Domestic Product to grow 2.9% in 2022, less than its most recent forecast of 3.7% in April.

For 2023, the IMF cut its U.S. growth forecast to 1.7% from 2.3% and it now expects growth to trough at 0.8% in 2024.

Last October, the IMF predicted 5.2% U.S. growth this year, but since then, new COVID-19 variants and stubborn supply chain disruptions have slowed recovery, while a sharp spike in fuel and food prices prompted by Russia's war in Ukraine further stoked inflation to 40-year highs.

"We are conscious that there is a narrowing path to avoiding a recession in the U.S.," IMF Managing Director Kristalina Georgieva told a news conference, noting that the outlook had a high degree of uncertainty.

[DoodleDawg]

A recession would be very hard to avoid at this point. Just a question of how long and how deep.

[FarCenter]

So this means that the US will fall even farther behind China...

https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)

IMF 2022 Estimated GDP (PPP, US$ billion)

China  30,178

US     25,347

[NWFree]

They’ll figure it out after it happens 🤪