U.S. Economy: Report Predicts Weak Growth

New report reflects fears that the U.S. economic recovery is losing steam.

Life_Preserver_Artistic_SmallEconomic growth in the United States will remain depressed over the next two years even if Congress and the White House find a way to avoid the “fiscal cliff” of tax increases and spending cuts at the end of the year, the International Monetary Fund (IMF) recently said.

The IMF’s annual report on the U.S. economy forecasts “modest” 2 percent gross domestic product growth this year and 2.3 percent growth next year. The unemployment rate, according to the IMF, will be 8.2 percent this year and 7.9 percent in 2013. In April, the IMF had predicted slightly higher growth of 2.1 percent for 2012 and 2.4 percent for 2013.

While the numbers are ominous for President Obama’s reelection campaign, the IMF report also contains an upside for the president: The IMF essentially backs Obama’s “balanced approach” to the nation’s economic woes.

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Source: Erik Wasson | The Hill