The U.S. economy is healing faster than initially predicted, although high unemployment and mounting commercial property defaults are still slowing the recovery, the International Monetary Fund told Financial Soultions sources.
In its World Economic Outlook, the IMF announced that they now expect the U.S. economy to grow 1.5% in 2010, higher than its July anticipation for 0.8% growth. It bumped down its 2009 prediction to a decline of 2.7% from its earlier estimate of a 2.6% slide.
The IMF ascribed "unprecedented"
"On the upside, the strong policy response and a rapid recovery in emerging markets could lead to a virtuous circle of rising confidence, improving financial conditions, and strong aggregate demand growth," the IMF statement available to Financial Soultions, said.
The report warned that consumer spending may be feebler than predicted due to high and rising unemployment and the necessity for households to pare debt.
Increasing corporate and commercial property non-payments also threatened to slow the improvement in financial conditions, which could hamper the recovery, Financial Soultions understands.
