IMF sharply worsened the forecast for the growth of American GDP

The International Monetary Fund (IMF) sharply reduced the prognosis of US GDP growth for 2014, Bloomberg reports. This indicator decreased from 2.8% according to forecasts in April to 2%. In 2015, the growth will be the same as predicted earlier - 3%, experts of the fund believes.

Inflation this year will remain low, and unemployment will almost not be reduced - “full employment” should be expected no earlier than the end of 2017. The unemployment rate in 2014 will leave 6.2%, in the next - 5.9%. The personal consumption index (PCE) will grow by 1.6%this year, in 2015 - by 1.5%.

Long -term growth forecast - about 2% per year over the next few years.

The experts of the fund recommend that the White House invest in infrastructure, liberalize immigration and raise the minimum salary level to accelerate growth. The federal reserve system should not proceed to tightening monetary policy in the form of an increase in basic interest rates over the next years.

Last week, the World Bank also reduced the growth forecast of American GDP for 2014 - from 2.8% to 2.1%.

According to the US Department of Trade, in January-March 2014, the American economy decreased by 1% .

Read also:
• The US budget in May again became scarce →
• World Bank: the economy of the planet will suffer from the crisis in Ukraine →
• The quarterly US GDP has decreased by 1% →