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HZ News IMF: Structural Forces Weigh on Future U.S. Growth

July 25, 2016

IMF: Structural Forces Weigh on Future U.S. Growth

The U.S. economy is currently doing well, but continued long-term growth requires addressing chronic issues, including falling labor force participation, weak productivity, rising income polarization, and high poverty rates, the International Monetary Fund (IMF) said in a recently released review of the national economy.

The report notes even with added stresses of a strong dollar, an energy-sector contraction, and global economic uncertainty, the IMF predicts U.S. GDP growth of 2.2% in 2016 and 2.5% in 2017.

In the longer term, however, the national economy faces a number of headwinds, including lower labor force participation due to an increasing share of the workforce retiring, income and wealth distribution that are increasingly polarized, and high levels of poverty.

Read more at IMF.org