US may be able to avoid recession in 2023: IMF chief

Published : 13 Jan 2023 08:38 PM

International Monetary Fund Managing Director Kristalina Georgieva has said that there is mounting evidence that the United States can avoid recession this year and achieve a "soft landing" for its economy, Reuters reported on Thursday.

US labor markets remain resilient and consumer demand remains strong despite increases in interest rates to fight inflation, Georgieva told reporters, adding that there has been a healthy shift away from excess goods purchases, which had pressured prices, back toward services demand, and there were more diversified sources of growth in the economy.

"It gives some argumentation of an expectation that the US would avoid falling into recession," she said. "And actually, I would say even if it is in technical terms in recession, that will be a very mild recession," the IMF chief noted. The International Monetary Fund in October forecast US GDP growth for 2023 at 1%. The World Bank on January 10 projected US growth at half a percent for 2023.