IMF Upgrades U.S. Growth Outlook But Warns of Slowdown Ahead as Global Recovery Remains Uneven

The IMF upgraded its U.S. economic growth forecast due to strong business investment, labor shortages driving wage gains, and federal spending.

But U.S. growth is expected to slow over the next year as pay moderates, stimulus funds run out, and interest rate hikes curb inflation.

The global economic recovery remains mixed due to COVID-19 and the war in Ukraine. Overall growth is slowing.

The euro area outlook worsened with contractions forecast in Germany and slower growth in France.

China's forecast declined as the boost from COVID reopening fades and a real estate crisis weighs on growth.