WS: US economy to grow again by year end, IMF says
ISTANBUL, Turkey -- The U.S economy will be growing again by year end, but tight credit conditions for consumers and businesses will hamper the recovery, the International Monetary Fund said Thursday as it raised its forecast for growth next year to 1.5 percent from 0.8 percent.
The IMF also issued a warning about U.S. public finances, saying government debt "could become unsustainable" unless measures are taken to restrain deficits, and that President Barack Obama and Congress should make sure health-care reform does not make deficits worse.
Still, stimulus spending by Washington and local governments, along with rock-bottom interest rates from the Federal Reserve, have halted the slide. "Unprecedented monetary, financial, and fiscal policy interventions are helping stabilize consumer spending and housing and financial markets, which points to renewed moderate growth in the second half of 2009," the organization said Thursday in its World Economic Outlook.
ISTANBUL, Turkey -- The U.S economy will be growing again by year end, but tight credit conditions for consumers and businesses will hamper the recovery, the International Monetary Fund said Thursday as it raised its forecast for growth next year to 1.5 percent from 0.8 percent.
The IMF also issued a warning about U.S. public finances, saying government debt "could become unsustainable" unless measures are taken to restrain deficits, and that President Barack Obama and Congress should make sure health-care reform does not make deficits worse.
Still, stimulus spending by Washington and local governments, along with rock-bottom interest rates from the Federal Reserve, have halted the slide. "Unprecedented monetary, financial, and fiscal policy interventions are helping stabilize consumer spending and housing and financial markets, which points to renewed moderate growth in the second half of 2009," the organization said Thursday in its World Economic Outlook.
