IMF's Georgieva says U.S. may be able to
avoid recession in 2023
Send a link to a friend
[January 13, 2023]
WASHINGTON (Reuters) - International Monetary Fund Managing
Director Kristalina Georgieva said on Thursday that there is mounting
evidence that the United States can avoid recession this year and
achieve a "soft landing" for its economy. |
Managing Director of IMF Kristalina
Georgieva attends a session during the G20 Leaders' Summit, in Nusa Dua,
Bali, Indonesia, November 16, 2022. REUTERS/Willy Kurniawan/Pool |
Georgieva told reporters that U.S. labor markets remain
resilient and consumer demand remains strong despite increases
in interest rates to fight inflation. She said there has been a
healthy shift away from excess goods purchases, which had
pressured prices, back toward services demand, and there were
more diversified sources of growth in the economy.
"It gives some argumentation of an expectation that the U.S.
would avoid falling into recession," Georgieva said during her
first news briefing of 2023. "And actually, I would say even if
it is in technical terms in recession, that will be a very mild
recession."
She noted that determinations of recessions are normally the
subject of intense debate but she said she was leaning toward a
soft-landing scenario for the United States.
The IMF in October forecast U.S. GDP growth for 2023 at 1.0%, a
projection it will update this month. The World Bank on Tuesday
forecast U.S. growth at 0.5% for 2023.
(Reporting by Andrea Shalal and David Lawder; Editing by Josie
Kao)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
|