The Clap The International Monetary Fund (IMF) has cut down growth forecasts for the U.S. economy.
The Deets The IMF expects the U.S. economy to grow at 2.9% in 2022, down from its previous 3.7% projection. It also cut down 2023 growth forecasts, from 2.3% to 1.7%. The IMF attributed its revised forecasts to soaring inflation (& therefore interest rates), supply chain disruptions, & the rise in food & energy prices due to Russia’s war in Ukraine.
Why this matters Despite the cuts in U.S. growth forecasts, the IMF sees the U.S. avoiding a recession if there are no more negative hits to the economy. It also said that if a recession does happen, it’s likely to be short & relatively unpainful.