IMF’s Blanchard: U.S. Economy is in ‘good shape’

Olivier Blanchard, the chief economist at the International Monetary Fund, said Tuesday he believes the U.S. economy is in “good shape” despite the organization’s lower outlook on it.

“The fundamentals are in decent shape. The banks are in decent shape. Their corporations have cash and households have decreased debt, so the elements you need for sustained growth are there,” Blanchard told CNBC’s “Squawk on the Street.”

Blanchard made his remarks after the IMF said its global growth forecasts remained unchanged. It also warned, however, that the economic recovery remains “moderate and uneven,” beset by greater uncertainty and a host of risks, including geopolitical tensions and financial volatility.