According to the forecast of the International Monetary Fund (IMF), the US economy will grow by around seven percent this year. That would correspond to the strongest growth rate in almost 40 years, said IMF boss Kristalina Georgiewa on Thursday. “This is very good news for the US and for the world economy,” she said. In April, the IMF was still assuming growth of 6.4 percent. In 2022, the US economy is expected to grow by another 5 percent.
The prognosis is based on the assumption that US President Joe Biden will pass billions of billions of euros to expand social benefits and invest in infrastructure in a similar amount by Congress. The packages would boost demand and increase gross domestic product (GDP) by a good five percent in the period from 2022 to 2024, the IMF said in a regular report on the economic situation in the USA.
The Washington-based organization also assumes that the current surge in inflation in the US as a result of the recovery from the pandemic is temporary. Core inflation, i.e. excluding food and energy prices, could therefore approach the 4 percent mark by the end of the year. At the end of next year, however, it should be 2.5 percent.