The International Monetary Fund (IMF) has revised growth forecast for the US economy in 2022. According to the updated data, US GDP will increase by 2.3% in 2022, while it will rise by 1% in 2023. The revisions mark a downgrade of 1.4% and 1.3% respectively.
The new projections are quite optimistic. However, this decline could be avoided if US lawmakers back President Joe Biden’s economic initiatives. In such a case, US GDP will hit a record high of 7% in 2022, according to the IMF forecast. Experts estimate that the US economy will continue recovering from the consequences of the COVID-19 pandemic and the country's GDP will increase by 4.9% in 2022.
However, recession risks remain. The IMF warned that a recession in the US will be hard to avoid due to a number of negative factors, mainly soaring inflation. It has already severely affected both the American economy and the global economy. Such factors as the ongoing COVID-19 pandemic, supply chain problems, and the implications of the Ukrainian crisis can pose additional risks to the US economy.
