IMF raises its outlook for the US economy

The International Monetary Fund (IMF) is raising its outlook for the US economy, as a budget deal in Washington and the Federal Reserve’s plan to taper its bond buying ease doubts about the future, IMF managing director Christine Lagarde said.

“We see a lot more certainty for 2014,” Lagarde said yesterday. With the unemployment rate falling, the Fed’s action last week and the government budget agreement, “all of that gives us a much stronger outlook for 2014, which brings us to raising our forecast,” she said.

In October, the IMF said the US economy would expand 2.6% next year, compared with 1.6% in 2013. While Lagarde didn’t specify any new figures in the interview, the Washington-based fund typically issues revised forecasts in January.