IMF Lowers US Economic Growth Forecast for This Year from 3.7% to 2.9%

[Asia Economy New York=Special Correspondent Joselgina] The International Monetary Fund (IMF) significantly downgraded its forecast for the United States' economic growth rate on the 24th (local time).

In its revised annual forecast released that day, the IMF lowered the US economic growth rate from 3.7% presented in April to 2.9%. Before Russia's invasion of Ukraine, in October last year, the IMF had projected the US economic growth rate for 2022 at 5.2%.

Along with this, the growth rate forecast for 2023 was revised downward from 2.3% in April to 1.7%.

Kristalina Georgieva, IMF Managing Director, stated in a press release, "We recognize that the path to avoiding a recession in the United States is very narrow."

Managing Director Georgieva warned, "Although the economy is recovering from the pandemic, the significant shocks caused by Russia's invasion of Ukraine and China's COVID-19 lockdowns are shaking the economy," adding, "Additional negative shocks could inevitably make the situation even more difficult." She cited high energy prices as a risk factor and predicted that global food issues could worsen further after next year.