The 2.8% forecast was made in April.
Highlights from the IMF Article IV report on the US:
- Keeps 2015 US forecast at 3.0%
- Says Fed may have scope to keep rates at zero past 2015
- Recommends limiting or ending itemized tax deductions
- Fed must remain mindful of financial stability
- Sees potential US growth averaging 2% for “next several years” versus 2.3-2.4% previously through 2018
It’s a sobering report to start the week. The US economy just isn’t gaining any traction. This was supposed to be the year of the great recovery but the economy is looking like it will be forever stuck in slow-growth mode.
