10:43 GMT25 July 2021
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    According to the International Monetary Fund (IMF) report the growth of the US economy could cause negative global spillovers.

    WASHINGTON (Sputnik) — The slower-than-predicted growth of the US economy could cause negative global spillovers, the International Monetary Fund (IMF) said in a report on Tuesday.

    "A more complex and harmful downside risk is the possibility that potential growth rate is lower than estimated and a smaller output gap than previously estimated," the report said.

    In June, the IMF downgraded forecast for the US economy in 2016 to 2.2 percent from 2.4 percent predicted in April.

    The slower-than-anticipated growth rate would mean "the US economy could soon bump up against capacity constraints that would slow growth and generate domestic inflationary pressures with negative global spillovers," the report added.

    The fund noted that the growth outlook for the United States is tilted to the downside.

    "Given uncertainty surrounding the implications of the UK referendum, continued financial market volatility or a further appreciation of the US dollar are possible," the report said.

    The IMF board of Directors urged the US Federal Reserve to keep the pace of interest rate normalization data-dependent and proceed "cautiously" with rate hikes, according to the report.


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    economy, report, International Monetary Fund, US
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