IMF's Georgieva says U.S. may be able to avoid recession in 2023 | Inquirer Business

IMF’s Georgieva says U.S. may be able to avoid recession in 2023

/ 06:40 AM January 13, 2023

IMF's Georgieva

The International Monetary Fund Managing Director, Kristalina Georgieva, speaks at a conference in Riyadh, Saudi Arabia, Oct 3, 2022. REUTERS/Ahmed Yosri

WASHINGTON  – 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.

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.

Article continues after this advertisement

“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.”

FEATURED STORIES

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 percent, a projection it will update this month. The World Bank on Tuesday forecast U.S. growth at 0.5 percent for 2023.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: ‘soft landing’, International Monetary Fund, US economy

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.