International Monetary Fund Director-General Kristalina Georgieva said in an interview with Fox Business yesterday (Friday): “The fund is looking forward to a recovery in the U.S. economy this year, with an unemployment rate of around 4%, and tremendous growth in start-ups that will create new jobs.”
The International Monetary Fund previously called on the United States to reduce its budget deficit, forecasting steady growth in 2026 and an uncertain inflation path.
In its first policy recommendation to the Trump administration, the fund confirmed that the U.S. budget deficit will remain in the range of 7% to 8% of GDP over the next few years, more than double the level targeted by U.S. Treasury Secretary Scott Bescent, while total government debt will reach 140% of GDP by 2031.
The IMF has completed its Article IV review of the U.S. economy, confirming that projected U.S. economic growth in 2026 will reach 2.4%, in line with expectations in January’s World Economic Outlook report.
The IMF said that while core inflation would reach 2% by early 2027, the current account deficit would remain high in the range of 3.5% to 4% of domestic output due to increased foreign borrowing and resident non-resident capital flows.
The fund said it expects U.S. job growth to remain at less than half of its pre-pandemic rate due to slowing population growth, while the unemployment rate is expected to remain near 4% from 2026 to 2027.
