The US economy performed better-than-expected in 2024, with the International Monetary Fund (IMF) upgrading its growth forecast for the region, and the resilience may persist in 2025 as the Federal Reserve unwinds its restrictive policy.
IMF World Economic Outlook (October 2024)
According to the IMF, Advanced Economies are projected to grow 3.2% in 2025, with the US expected to expand 2.2%.
Source: IMF
Even though economic activity in the US is anticipated to slow in 2025, the IMF may continue to revise its growth forecast as the Federal Open Market Committee (FOMC) remains ‘committed to maintaining our economy’s strength by supporting maximum employment and returning inflation to our 2 percent goal.’
In turn, the FOMC may further unwind its restrictive policy in an effort to prevent a recession, and the strength in the US economy may carry into 2025 amid the upward revisions…
