International Monetary Fund expects U.S. economy to grow 2 percent in 2014

The organization lowered its estimate of growth from 2.7 percent at the beginning of the year.
By JOSH BOAK, Associated Press Published: June 17, 2014

In brief

IMF expects 2% growth

The U.S. economy is poised to accelerate after a dismal start to the year even though the job market won’t return to full employment until 2017.

That was the forecast offered Monday in a report by the International Monetary Fund.

The IMF noted that steady job gains and other recent data suggest that the economy is rebounding. Employers have added 200,000-plus jobs for four straight months, and the unemployment rate has fallen to 6.3 percent. Auto sales and factory activity are increasing.

Yet growth in 2014 won’t likely top last year’s lackluster performance, the IMF says. The Washington-based organization foresees the economy growing a modest 2 percent in 2014, below its previous estimate of 2.7 percent. That would be nearly identical to the 1.9 percent growth in 2013.

The IMF blames the lingering aftermath of the brutal winters and a sluggish recovery in home sales.

Associated Press