Economics
IMF Cuts Month-Old Forecast for US GDP, Citing Inflation Risks
- Avoiding recession is ‘increasingly challenging,’ board says
- Fund now sees unemployment rate exceeding 5% in 2024, 2025
Shipping containers are loaded onto trucks at the Port of Boston in Massachusetts.
Photographer: Allison Dinner/BloombergThis article is for subscribers only.
The International Monetary Fund cut its growth projections for the US economy this year and next, and raised its unemployment-rate estimates through 2025, warning that a broad-based surge in inflation poses “systemic risks” to both the country and the global economy.
Gross domestic product in the world’s biggest economy will expand 2.3% this year, the executive board of the Washington-based lender said in its so-called Article IV consultation released Tuesday. That’s less than the 2.9% it projected last month, when its staff concluded a visit for the report.