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    Visitors are silhouetted against the logo of the International Monetary Fund at the main venue for the IMF and World Bank annual meeting in Tokyo in this October 10, 2012 file photo.

    US Dollar Overvalued by Up to 20% - IMF

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    The US dollar is up to 20 percent overvalued, the International Monetary Fund (IMF) said in a report on Tuesday.

    WASHINGTON (Sputnik) — The Fund underscored that post-economic crisis growth has also been low and too unequal, relative to historical performance.

    "The US dollar is moderately overvalued (by around 10-20 percent)," the report stated.

    The Fund noted that overall outlook for the US economy is clouded by other important medium-term imbalances too, including rising public debt.

    "The current account deficit is expected to be around 3 percent of GDP over the medium-term and the net international investment position has deteriorated markedly in the past several years," the report said.

    The US economy is expected to grow 2.1 percent in 2017 and 2018, but it will likely slow down to 1.9 percent in 2019 and 1.8 percent in 2020, the International Monetary Fund also stated in the report.

    "Growth is expected to rise modestly above 2 percent this year and next, driven by continued solid consumption growth and a cyclical rebound in private investment," the report stated. "Growth is forecast to subsequently converge to the underlying potential growth rate of 1.8 percent."

    The Fund noted that the US administration wants to address medium-term economic imbalances, but underscored that many details of these plans are still unclear.

    At the same time, the IMF said the US economy has entered its third-longest expansion since 1850.

    "Real GDP is now 12 percent higher than its pre-recession peak, job growth has been persistently strong and, although there are measurement uncertainties, the US economy appears to be back at full employment," the report said.

    The Fund advised Washington to conduct a "fundamental" tax reform and stressed that the US economy would benefit from remaining open to free trade.

    Tags:
    GDP, economic outlook, US dollar, International Monetary Fund
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