The International Monetary Fund (IMF) on Friday (June 24) forecast that the United States’ gross domestic product (GDP) will grow by 2.9% this year, below previous forecasts. The last time growth of 3.7% was forecast was in April.
The IMF has lowered its forecast for U.S. economic growth as the Federal Reserve’s (Fed) interest rate hike slows demand and could plunge the U.S. into recession.
The IMF expects the U.S. economy to grow by 1.7% in 2023, down from the previous forecast of 2.3%, and GDP growth of just 0.8% is predicted for 2024.
In October last year, the IMF expected the U.S. economy to grow by 5.2% this year.
In addition, the sharp rise in fuel and food prices has caused inflation to reach its highest level in 40 years.