“The US economy has proven its resilience,” said Kristalina Georgieva, Managing Director of the International Monetary Fund, in a press conference shortly after the updated figures were published.
The International Monetary Fund slightly raised its forecast for US economic growth for the year 2023 on Friday, while noting that a slowing economy could lead to a slight increase in unemployment in 2024.
In a statement, the International Monetary Fund expected real GDP growth in the United States to increase by 1.7% this year, up from the 1.6% expected earlier this year, before slowing to 1.0% in 2024.
The institution indicated that the unemployment rate in the United States will rise slightly, “with slowing but strong growth” pushing it towards an increase to 4.4 percent by the end of next year.
Speaking of inflation, Georgieva said that flexible demand and a strong labor market constituted a “double-edged sword” for the US economy.
In response, the Fed’s interest rate will “need to be somewhat higher for longer” if it is to succeed in bringing the inflation level back to its long-term target of 2%, she says.