WASHINGTON – The International Monetary Fund has shaved its forecast for U.S. economic growth this year, mostly because of a sharp contraction in the first quarter.
Continue Reading Below
But the global lending organization still expects that growth accelerated in the April-June quarter and will remain healthy for the rest of this year and next.
The IMF projects growth will be just 1.7 percent this year, down from a 2 percent estimate in June. That would make 2014 the weakest year since the recession ended in June 2009.
The IMF's outlook is more pessimistic than the Federal Reserve, which expects growth of at least 2.1 percent. But it matches most other economists.
The Fund also urged the U.S. government to take steps to boost growth, including encouraging more Americans to find jobs and lifting productivity.