Speaking on NBC’s Meet the Press programme today the International Monetary Fund MD, Christine Lagarde, predicted that the US economy would expand at a faster rate next year, given the positive economic data and some signs of compromise in Congress.
Growth is picking up and unemployment is going down. So all of that gives us a much stronger outlook for 2014, which brings us to raising our forecast
The budget deal that was cut at year-end is a very good sign of … responsibility, accountability and realism.I certainly hope that in February, Congress will be equally responsible and will not threaten the recovery with yet another debate about whether or not the U.S. honor or default.
The IMF forecast in October that the U.S.economy would expand 2.6% in 2014 after growing 1.6% this year. At the time, Lagarde warned that Congressional failure to raise the U.S. debt ceiling could damage not only the United States, but the rest of the global economy.
She also praised the U.S. Federal Reserve’s communication of its decision last week to start tapering, although personally I, (and I think many of you), would take issue over that particular comment. Perhaps she’s been misquoted !
No actual upward revison figure was mentioned but we should expect one in due course.
Full NBC interview here
