IMF Lowers U.S. Growth Outlook

“The International Monetary Fund lowered its forecast for U.S. growth as automatic budget cuts take hold, according to a draft of the Washington-based lender’s World Economic Outlook.

U.S. gross domestic product will expand 1.7 percent this year compared with a previously forecast 2 percent advance, according to the draft report obtained by Bloomberg News. The draft, which was presented to the IMF board last week, may be subject to revisions before its scheduled April 16 release.

The U.S.’s fiscal tightening that took effect last month will restrain consumption temporarily, the report said. The global economy will expand 3.4 percent this year, compared with 3.5 percent forecast in January, according to projections in the report….”

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