The IMF on Tuesday raised its 2017 economic forecast for the United States but said the coming years would likely see sluggish gains in the absence of more growth-oriented policy from Washington.
Citing strong market confidence in the world s largest economy, the International Monetary Fund said US GDP was now expected to grow by 2.2 percent this year, a tenth of a percentage point higher than a forecast published in July.
The US economy will also likely expand by an even faster 2.3 percent in 2018, up two tenths from July s estimate, according to the global crisis lender.
The rosier figures, released with the latest update to the IMF s semiannual World Economic Outlook, were lifted in part by a recovery in the US energy sector and growing consumer spending and business investments earlier in the year.
But the IMF said that — absent reforms and stimulus and with a Republican economic agenda suffering lengthy delays in Congress — the US was unlikely to sustain the faster pace of growth.
“Over a longer horizon, US growth is expected to moderate,” the report said, noting that the current estimates assumed no change in US fiscal policies.