Unexpectedly, the IMF Cuts the US' Growth Forecast to a Paltry 2%

Last quarter, the US economy shrank by 1% (annualized).

The media insisted this was Good News, if you looked at it the right way. By retreating, our Performance Trophy Administration had just given itself that much more room to spring forward!

Remember this article?

U.S. economy shrinks, but it's not a big deal

By Annalyn Kurtz @AnnalynKurtz

Brace yourself. The U.S. economy looks like it went on a roller-coaster ride at the start of the year.

Um, don't rollercoasters go up at some point?

If a "rollercoaster" does nothing but go straight and then plunge to the depths, it's not a "rollercoaster." It's a "Falling Train."

...

A slump was entirely expected, and economists aren't too worried. They forecast a bounce back in the spring.

Take for example Joseph Lavorgna, chief U.S. economist at Deutsche Bank. He predicts the economy will rev up, growing at more than a 4% pace in April through June. In a note to clients this week, he cautioned investors not to worry if the first quarter numbers were lousy.

So this fall by 1% will just make our surge to 4% growth all that more dramatic.

Or, maybe not.

The International Monetary Fund sees a more painful short-term future for the U.S. economy than the U.S. government does.

The IMF on Monday projected U.S. growth clocking in at just under 2 percent this year, a significant downgrade from the IMF's projection of 2.7 percent growth last year.

But I'm sure it's "no big deal" and "no reason to worry," as CNN Money's Annalyn Kurtz would report.

posted by Ace at 04:18 PM

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