The IMF improved its growth outlook for the United States by six tenths in 2024: “It is impressive”

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International Monetary Fund (IMF) Predicts Strong Growth for US Economy

The International Monetary Fund (IMF) has revised its growth forecast for the United States, predicting a GDP growth of 2.7% for the country this year. This marks a significant increase of six tenths compared to the earlier projection made in January. The IMF attributes this growth to the exceptional performance of the US economy, which has surpassed its pre-pandemic trend.

According to the IMF’s global economic outlook report released on Tuesday, the strong performance of the US economy is not only impressive but also a major driver of global growth. The organization has also raised its growth estimate for 2025 by two tenths to 1.9%, citing a gradual fiscal adjustment and a softening labor market as factors that may slow down aggregate demand.

However, the unexpected resilience of the US economy could pose risks in terms of inflation, which remains stubbornly above 3% and far from the 2% target. The report also highlights the impact of the strength of the dollar on the global economy, particularly on developing countries and raw materials markets.

The IMF warns that persistent and unexpected inflation in the US could lead to an upward revision of interest rate expectations and cause an appreciation of the US dollar, potentially putting pressure on the financial sector. Geopolitical risks, such as the recent Iran-Israel tension, could also affect commodity markets, trade, and the global economy.

Despite geopolitical tensions and conflicts in regions like Ukraine and Gaza, the IMF has raised global growth for this year by one tenth to 3.2%. However, the organization cautions that escalating conflicts, such as the ongoing Gaza war, could lead to higher oil and energy prices, shipping costs, and food prices, ultimately impacting global inflation.

In conclusion, while the US economy continues to show strength and resilience, external factors such as geopolitical tensions and conflicts pose risks to global economic growth. The IMF emphasizes the need for vigilance and cooperation to navigate these challenges in the coming years.

Source: Reuters, EFE.