IMF Raises U.S. 2021 Growth Forecast to 7%, Assumes Biden Spending Plans Pass

• The International Monetary Fund raised its 2021 U.S. growth projection sharply to 7.0% due to a strong recovery from the COVID-19 pandemic and an assumption that much of President Joe Biden's infrastructure and social spending plans will be enacted. 
• The IMF's latest forecast, marking the fastest U.S. growth pace since 1984, compares favourably to an April projection of 4.6% growth in 2021. The Fund raised its 2022 U.S. GDP growth forecast to 4.9%, up from its previous 3.5% forecast made in April. 
• The new forecasts consider the IMF's annual assessment of U.S. economic policies. The forecasts also assume that the U.S. Congress will pass the Biden administration's American Jobs Plan and American Families Plan for infrastructure, social spending and tax reform plans this year at a size and composition similar to their original proposals. 
• IMF Managing Director Kristalina Georgieva said the two packages would implement many recommendations that the IMF has made for the United State for years, including investments to boost productivity, education and to allow more women to join the American workforce.

(Source: Reuters)