WASHINGTON (Pakistan Point News / Sputnik - 25th June, 2019) The US economy is in the process of its longest period of expansion in recorded history, but not every American has reaped the benefits of that expansion, the International Monetary Fund (IMF) said in its latest report published on Monday.
"The US economy is in the longest expansion in recorded history," the report said. "Unemployment is at levels not seen since the late 1960s, and economic activity is growing above potential, aided by a fiscal stimulus and supportive financial conditions. Despite these positive macroeconomic outcomes, the benefits from this decade-long expansion have not been shared as widely as they could."
The IMF said in the report the US gross domestic product (GDP) growth is expected to slow down to around 2.6 percent this year and 1.9 percent in 2020.
The IMF also said life expectancy in the United States is falling, income inequality in increasing and poverty rates, though declining, remain higher than in other advanced economies.
In addition, the report warned that an abrupt reversal of the financial market conditions or a deepening of ongoing trade disputes represents a material risk to the US economy.
The IMF is therefore encouraging the US authorities to work with their trading partners to address current trade tensions and promote a more open, stable and transparent rules-based international trade system.
The directors also welcomed the Federal Reserve's decision to pause interest rate adjustments.
On June 6, IMF Managing Director Christine Lagarde said that the trade dispute between the United States and China could slash global GDP growth by 0.5 percent in 2020.
The United States and China have been trying to overcome disagreements that emerged in the wake of US President Donald Trump's decision last June to impose 25 percent tariffs on $50 billion worth of Chinese goods in a bid to fix the trade deficit. Since then, the sides have exchanged several rounds of duties.
