IMF raising its U.S. economic growth forecast

Nathan Andrada – Fourth Estate Cooperative Contributor

Washington, DC, United States (4E) – International Monetary Fund (IMF) Managing Director Christine Lagarde said Sunday that the agency is raising the economic growth forecast for U.S. after Washington struck a budget deal and the Federal Reserve said it would begin scaling down bond-purchasing program.

In an interview with NBC’s “Meet the Press”, the IMF’s top official said she sees a lot more certainty for 2014, giving the lender a much stronger outlook of the U.S. economy for 2014 and the reason for raising the forecast.

Ms. Lagarde did not give an exact figure for the increased forecast. The IMF said in October that the U.S. gross domestic product (GDP), the broadest gauge of economic output in the economy, will likely grow 2.5 percent in 2014. The agency is expected to update its World Economic Outlook by middle of January.

The world’s biggest economy expanded at its fastest rate in two years during the three months through September, growing by a revised 4.1 percent, according to government data. The jobless rate also fell to 7 percent, official reports show.

This year, the IMF has been critical of the U.S. because of its fiscal showdown, and has urged the central bank not to rush in reducing its easy-money policies.

IMF officials said at its October annual meetings that it viewed the U.S. as a risk to the global economy, at a time when the shutdown was at its height and the issue on debt ceiling remained unresolved.

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