Ali Alichi, IMF Western Hemisphere Department July 12, 2016

• “U.S. growth resilient, forecast at 2.2 percent this year, 2.5 percent in 2017
• Addressing long-term structural problems key to ensure continued solid growth
• U.S needs to lower public debt

While the U.S. economy is doing well, continued solid growth hinges on addressing long-term issues of falling labor force participation, weak productivity, rising income polarization, and high poverty rates, the IMF said in its annual review on the state of the U.S. economy. According to the report, the U.S. economy has been resilient: 2.4 million new payroll jobs have been created over the past year; the unemployment rate has fallen to 4.9 percent, about half of its peak during the Great Recession; and inflation remains contained. While the economy lost some momentum over the past year due to a strong dollar, a contraction in oil sector investment as oil prices tumbled, still weak external demand, and some episodes of global financial market distress, the IMF said that growth this year is projected to be 2.2 percent. Barring any major shocks, the U.S. economy is expected to bounce back to 2.5 percent by 2017…”