IMF raises US growth forecast for 2021 to 7%

WASHINGTON, Jul 1 (Reuters) – The International Monetary Fund (IMF) on Thursday raised its growth projection for the United States in 2021 to 7.0% from a 4.6% forecast in April, due to fiscal support. and unprecedented monetary.

The IMF said the revised forecast represents the fastest growth rate in a generation for the United States. It also raised its projection for 2022 to 4.9%, up from 3.5% in April.

The new forecasts assume that the US Congress will approve the US government’s infrastructure, social spending and tax plans this year with a size and composition similar to its original proposals, the IMF said.

“Indicators suggest that there is still significant slack in the labor market, which should serve as a safety valve to cushion underlying wage and price pressures,” the IMF said in its statement.

The entity added that it expects inflation expectations in the United States to remain well anchored, although “they will be darkened in the coming months by significant and transitory movements in relative prices”, which could cause inflation in personal consumption spending reach a temporary peak close to 4% later this year.

(Report by David Lawder. Edited in Spanish by Javier Leira)

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