03 July 2012 17:23 [Source: ICIS news]
WASHINGTON (ICIS)--The ?xml:namespace>
Following a near-normal GDP expansion of 3% (annualised) in the fourth quarter of 2011, US GDP growth declined to 1.9% in the first quarter this year, and some economists speculate that second quarter results could be even lower.
The IMF review said that “strong headwinds persist on private consumption, as households continue to deleverage”, noting that
Although the long-suffering US housing sector has shown signs of recovery, that key construction industry remains at depressed levels, the IMF said, adding that access to mortgage credit is still tight despite historically low interest rates.
“Job creation has slowed since early 2012, and the employment-to-population ratio remains substantially below pre-recession levels,” the report said.
The IMF noted that
“Exports have been a bright spot in the recovery but have recently been hampered by some slowdown in foreign demand, particularly in
In all, the IMF warned that “
Consequently, the IMF said it forecasts US GDP growth for full year 2012 will be no better than 2%, then edge up to 2.3% next year and to 2.8% in 2014.
The report said that IMF economists do not see the
The IMF was established in the closing days of World War II to promote international monetary co-operation and stability, foster economic growth and employment and to provide financial assistance to countries to help ease balance of payments problems.
Under its multinational mandate, the IMF periodically reviews the economic conditions and stability of its 188 member countries.
Paul Hodges studies key influences shaping the chemical industry in Chemicals and the Economy
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