IMF sees slower US economic growth in 2007

The Hague, Mar 29 | Updated: Mar 30 2007, 06:03am hrs
The International Monetary Fund expects US economic growth to slow tthis year to below the 2.9% it expected six months ago, IMF managing director Rodrigo Rato said on Friday.

We will see lesser growth in the United States than (predicted) in September. We probably see now that number of September going to be reduced but not in significant way, Rato told reporters at a briefing.

The IMF forecasted 2.9% growth in September for the US economy but draft figures for global and US economic growth obtained by Reuters earlier this month showed that the IMF was expected to reduce its 2007 US growth estimate to 2.6%.

Rato also cautioned that problems in the US subprime mortgage market would result in weaker US consumption in 2007, but that it would not affect the overall stability of the financial sector.

Reuters