Fund also upgrades growth forecast for U.S. economy, which remains the developed world’s best performer.
by David J. Lynch
Washington Post
Policymakers in the United States and other major economies have quelled the worst inflation in four decades without tumbling into recession, the International Monetary Fund said Tuesday, adding that this “major achievement” should pave the way for significant changes in interest rates, taxes and government spending.
The fund also raised its forecast for U.S. economic growth over the next two years, confirming that the world’s largest economy has enjoyed the strongest recovery from the pandemic of any advanced nation.
The United States now is expected to grow at an annual rate of 2.8 percent this year and 2.2 percent next year, faster than the fund predicted three months ago. Growth in the euro area economy this year is expected to fall below 1 percent, while Japan will barely grow at all, according to the IMF.