IMF: US economy is growing slightly faster than expected this year

The International Monetary Fund (IMF) has slightly raised its forecast for US economic growth for this year. However, experts from the UN organization point out that interest rates in the United States will probably have to remain high for longer to curb inflation. The fund is also urging Democrats and Republicans in Washington to quickly reach an agreement on the US government’s debt ceiling.

The IMF now expects growth of 1.7% for this year, down from a previous forecast of 1.6% in April. “The US economy has shown resilience,” IMF chief Kristalina Georgieva told a news conference shortly after the updated figures were released. Next year, growth in the world’s largest economy is expected to slow to 1%. In April, a plus of 1.1% was still assumed. The slowdown is also expected to lead to a slight increase in unemployment in 2024, according to the IMF.

An agreement between Democrats and Republicans on the necessary increase in the debt ceiling is still pending. Republican Speaker of the House of Representatives Kevin McCarthy said over the coming long weekend that he would continue to work to reach a deal. If the debt ceiling is not raised, the US government will officially run out of money by June 1. This can cause major financial troubles all over the world.