IMF Cuts US Growth Forecast to 1.6%

The International Monetary Fund says the U.S. economy is losing momentum.

The IMF said the American economy will expand by only 1.6% this year, down from 2.6% in 2015. The latest forecast is 0.6 percentage points lower than what the fund predicted just three months ago.

The downgrade is mostly down to sluggish second quarter U.S. growth, the fund said in its latest World Economic Outlook.

The world’s largest economy grew by just 1.4% between April and June compared to the same period last year, according to U.S. government data. The performance was well below economist expectations.

“The U.S. economy has lost momentum over the past few quarters, and the expectation of a pickup in the second quarter of 2016 has not been realized,” the IMF said.

via CNN

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