IMF Director: America can avoid recession in 2023‎

International Monetary Fund Managing Director Kristalina Georgieva said Thursday that there is growing evidence that the United States can avoid a recession this year.

According to Reuters, Georgieva told reporters that US labor markets remain resilient and that consumer demand remains strong despite interest rate increases to fight inflation.

She said there had been a healthy shift away from excessive purchases of goods, which pressured prices, back towards demand for services, and there were more diversified sources of growth in the economy.

“This provides some indications that the United States will avoid falling into a recession… In fact, I can say that even if it is technically a recession, it will be very moderate,” Georgieva added during her first testimony in 2023.

The International Monetary Fund in October forecast US 2023 GDP growth of 1 percent, a forecast that will be updated this month. As for the World Bank, it predicted, on Tuesday, that the US economy would grow by 0.5 percent this year.