The United States faces a ‘rocky recovery’ as it looks to build back from the financial uncertainty around the financial sector, high inflation, the war in Ukraine and Covid.
This comes despite previous assurances from Biden the ‘economic plan is working… it’s fiscally responsible… we got more work to do but we’re making a lot of progress.’
An update released today forecast 1.6% growth for the US this year, an upgrade on the 1.4% expected in January but down significantly from the 2.8% last year.
The report warns of the recent ‘banking turbulence’ in the United States, brought on by the collapse of SVB and Signature Bank in March, and inflationary pressures.
While consumer spending and a robust job market have helped confidence since January, the overall picture is still ‘clouded’ by uncertainty, the IMF said.