IMF Issues More Upbeat US Growth Forecast

The International Monetary Fund slightly raised its forecast for 2023 US economic growth on Friday while noting that a slowing economy will likely lead to a small increase in unemployment in 2024.

"The US economy has proven resilient," IMF managing director Kristalina Georgieva said in a press conference, shortly after the updated figures were released.

Real GDP growth in the United States is expected to rise by 1.7 percent this year, up from 1.6 percent forecast earlier this year, before slowing to 1.0 percent in 2024, the IMF said in a statement.

The US unemployment rate, which is currently at near-record lows, is expected to tick up slightly, with "slowing, but still-solid, growth" pushing it to increase to 4.4 percent by the end of next year.

Addressing inflation, Georgieva said resilient demand and a strong labor market had been "something of a double edged sword" for the US economy.

"They have been certainly a boost to American families, but they have also contributed to more persistent inflation that had been anticipated," she said.

In response, she added, the Federal Reserve's interest rate "will need to be somewhat higher for longer," if it is to successfully bring inflation back down to its long-term target of two percent. (AFP)