IMF lowers U.S. GDP forecast

The International Monetary Fund released its World Economic Outlook on Tuesday. It now expects U.S. gross domestic product growth of 1.6% this year and 1% in 2023. In April, the IMF forecast GDP growth of 3.7% and 2.3% in 2022 and 2023, respectively. The current outlook forecasts a significant GDP slowdown compared with the 5.7% gain in 2021.

On Sept. 29, the U.S. Bureau of Economic Analysis released its third estimate of the second-quarter GDP, which showed a 0.6% decline, in line with the previous estimate. In the first quarter, GDP fell by 1.6%.

Looking at individual GDP components, private investments and government spending dragged down the second-quarter figure. The former had weaknesses in residential housing and private inventories.