“The US economy has proven its resilience,” IMF Managing Director Kristalina Georgieva told a news conference shortly after the updated figures were released.
In a statement, the International Monetary Fund expects real GDP growth in the United States to increase to 1.7% this year, from 1.6% expected earlier this year, before slowing to 1% in 2024.
The institution indicated that the unemployment rate in the United States would increase slightly, “with slow but strong growth”, pushing it towards an increase to 4.4% by the end of next year.
Speaking of inflation, Georgieva said elastic demand and a strong labor market are a “double-edged sword” for the US economy.
“They certainly gave a boost to American households, but they also contributed to more persistent inflation that was initially expected,” she added.
In response, the Fed’s interest rate “will have to be a bit higher for longer” if it is to be successful in bringing inflation back to its long-term target of 2%, Georgieva said.
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