AFP, Washington :
The International Monetary Fund warned the United States Wednesday over poverty and rising inequality in the country, saying both could hold back its economic potential.
The IMF cut its outlook for US economic growth this year to 2.2 percent, compared to 2.4 percent forecast at the beginning of the year. It cited the impact of slower global growth overall, the contraction in the energy industry due to low oil prices, and a slowdown in domestic consumer spending.
The Washington-based global crisis lender said the US economy is in “good shape” generally, growing more strongly than other leading advanced economies, with unemployment at a nearly nine year low and inflation in check.
The world’s largest economy “has repeatedly demonstrated its resilience in the face of financial market volatility, a strengthening dollar, and subdued global demand,” the report said.
Yet it identified stark trends that it said will slowly choke off avenues to future growth if not addressed soon, particularly a very high level of poverty for a rich country and increasing inequality.
The IMF said the ageing of the US population, with a surge of baby-boomers moving into retirement, is combining with a troubling stall in productivity gains and lack of investment in workers and physical capital to present a new challenge to the economy.
AFP, Washington
The International Monetary Fund warned the United States Wednesday over poverty and rising inequality in the country, saying both could hold back its economic potential.
The IMF cut its outlook for US economic growth this year to 2.2 percent, compared to 2.4 percent forecast at the beginning of the year. It cited the impact of slower global growth overall, the contraction in the energy industry due to low oil prices, and a slowdown in domestic consumer spending.
The Washington-based global crisis lender said the US economy is in “good shape” generally, growing more strongly than other leading advanced economies, with unemployment at a nearly nine year low and inflation in check.
The world’s largest economy “has repeatedly demonstrated its resilience in the face of financial market volatility, a strengthening dollar, and subdued global demand,” the report said.
Yet it identified stark trends that it said will slowly choke off avenues to future growth if not addressed soon, particularly a very high level of poverty for a rich country and increasing inequality.
The IMF said the ageing of the US population, with a surge of baby-boomers moving into retirement, is combining with a troubling stall in productivity gains and lack of investment in workers and physical capital to present a new challenge to the economy.
The International Monetary Fund warned the United States Wednesday over poverty and rising inequality in the country, saying both could hold back its economic potential.
The IMF cut its outlook for US economic growth this year to 2.2 percent, compared to 2.4 percent forecast at the beginning of the year. It cited the impact of slower global growth overall, the contraction in the energy industry due to low oil prices, and a slowdown in domestic consumer spending.
The Washington-based global crisis lender said the US economy is in “good shape” generally, growing more strongly than other leading advanced economies, with unemployment at a nearly nine year low and inflation in check.
The world’s largest economy “has repeatedly demonstrated its resilience in the face of financial market volatility, a strengthening dollar, and subdued global demand,” the report said.
Yet it identified stark trends that it said will slowly choke off avenues to future growth if not addressed soon, particularly a very high level of poverty for a rich country and increasing inequality.
The IMF said the ageing of the US population, with a surge of baby-boomers moving into retirement, is combining with a troubling stall in productivity gains and lack of investment in workers and physical capital to present a new challenge to the economy.
AFP, Washington
The International Monetary Fund warned the United States Wednesday over poverty and rising inequality in the country, saying both could hold back its economic potential.
The IMF cut its outlook for US economic growth this year to 2.2 percent, compared to 2.4 percent forecast at the beginning of the year. It cited the impact of slower global growth overall, the contraction in the energy industry due to low oil prices, and a slowdown in domestic consumer spending.
The Washington-based global crisis lender said the US economy is in “good shape” generally, growing more strongly than other leading advanced economies, with unemployment at a nearly nine year low and inflation in check.
The world’s largest economy “has repeatedly demonstrated its resilience in the face of financial market volatility, a strengthening dollar, and subdued global demand,” the report said.
Yet it identified stark trends that it said will slowly choke off avenues to future growth if not addressed soon, particularly a very high level of poverty for a rich country and increasing inequality.
The IMF said the ageing of the US population, with a surge of baby-boomers moving into retirement, is combining with a troubling stall in productivity gains and lack of investment in workers and physical capital to present a new challenge to the economy.
