“There is some reason to expect the US not to slip into a recession,” said IMF Managing Director Kristalina Georgieva.
The United States can avoid a recession this year and achieve a “soft landing” for its economy, according to the managing director of the International Monetary Fund (IMF). “There are some arguments to hope that the US does not enter a recession,” Kristalina Georgieva said at her first press conference of 2023 on Thursday (local time) in Washington.
“Even if it’s technically a recession, I think it will be a very mild recession.” US job markets are stable and consumer demand is strong despite rate hikes to fight inflation. There has been a healthy shift from overbuying goods, which has pushed prices down, back to demand for services.
She noted that the assessment of recessions is often the subject of intense debate, but said it tends to be a soft landing for the United States. The IMF has forecast GDP growth of 1.0 percent in October for 2023, a forecast that will be updated this month. The World Bank forecast US growth of 0.5 percent for 2023 on Tuesday.
(Portal)