IMF sees much stronger US growth, 2021 GDP +7.0%

IMF sees much stronger US growth, 2021 GDP +7.0%

WASHINGTON: The IMF is bullish on the US economic recovery, predicting growth will hit 7 percent this year-much stronger than previously forecast and "the fastest pace in a generation," the Fund said in a report. The cheery analysis is a boon to President Joe Biden's administration and comes amid data showing an improving job market and on the eve of the all-important official employment report. The International Monetary Fund's annual review of the US economy put growth at its fastest rate since 1984, and also boosted the 2022 GDP forecast to 4.9 percent, 1.4 percentage points higher than the April estimate.

But while the IMF mostly cheered Biden's policies to support the economy, the report flagged "significant concern" over the fact he has not pulled back on tariffs on goods like steel and aluminum imposed by his predecessor. The United States has seen a "remarkable recovery," the Fund said, helped by "unprecedented" support from government spending and the Federal Reserve's "highly effective" stimulus measures.

The report notes the potential for growth to be even higher than forecast, but the outlook assumes $4.3 trillion in spending over the next decade from Biden's proposed American Jobs Plan (AJP) and American Families Plan (AFP). Together