IMF’s Lagarde Says US Growth Forecasts To Be Downgrades Again Next Week

International Monetary Fund Managing Director Christine Lagarde said on Wednesday the institution would lower its 2016 U.S. growth forecast again and called policies that restrict trade “economic malpractice” that would choke off growth.

Lagarde, in prepared remarks at Northwestern University ahead of next week’s IMF and World Bank annual meetings, said the U.S. growth forecast would be reduced again because of economic setbacks in the first half.

The IMF in July had cut its 2016 U.S. growth forecast to 2.2 percent from 2.4 percent based on weak first quarter growth. The Fund will issue new forecasts next week in an update to its World Economic Outlook.

Japan and Europe were seeing sub-par growth, but the picture did not appear to be deteriorating, Lagarde said.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza