IMF lifts US growth forecast to 2.8% in 2024

The International Monetary Fund (IMF) on Tuesday revised upward its economic outlook for the United States to 2.8 per cent in 2024, marking a 0.2 percentage point increase from its July estimates. The upward revision comes on account of “stronger outturns in consumption and nonresidential investment.”

“The resilience of consumption is largely the result of robust increases in real wages (especially among lower-income house-holds) and wealth effects.” the IMF’s latest World Economic Outlook read.

However, the US economic growth is projected to slow to 2.2 per cent in 2025 as fiscal policy is gradually tightened and a cooling labour market slows consumption.

“With GDP growth lower than potential, the output gap is expected to start closing in 2025.” the report read.

The IMF also projected inflation in the United States to stand at 3.0 per cent in 2024, then decreasing to 1.9 per cent by 2025.

Attribution: IMF world economic outlook October 2024

Subediting: Y.Yasser