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IMF lowers 2016 growth estimates for US economy

by ChemOrbis Editorial Team - content@chemorbis.com
  • 23/06/2016 (14:08)
According to media reports, the International Monetary Fund cut its 2016 growth estimates for the US economy to 2.2% from its earlier estimates of 2.4% while the fund maintained its estimates for 2017 at 2.5%.

The IMF reported that the US economy is generally in good shape while a strong dollar, sluggish business investment and weak global demand are still weighing down the economy. The fund called on the US government to take more measures to boost growth and labor force participation and to lessen poverty, including an increase in infrastructure spending, an increase in the federal minimum wage, and the elimination of corporate tax loopholes accompanied by a cut in the overall income tax rate paid by companies.

The IMF also urged the US Fed to institute a “gradual” rate hike. Previously, the Fed kept the range for its main interest rates stable for another month at 0.25% to 0.50% and the bank reported that they needed to see clear signs of a strengthening recovery before lifting rates while concerns about economic growth rates and a weakening labor market are overshadowing their future hike plans.
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