US economic recovery is tepid, says IMF
Wednesday, 04 July 2012 | 00:00
The US recovery "remains tepid", according to the annual report from the International Monetary Fund (IMF).
It warned of risks from the eurozone debt crisis and the uncertainties surrounding domestic policies, with an election in November and the debt ceiling needing to be raised in 2013.
But it said there was also a chance that the economy could recover faster.
The IMF said non-financial firms could invest more than expected and the housing market recovery may accelerate.
Its report said that "house prices have stabilised recently, but remain at depressed levels".
The IMF suggested that the federal budget could be cut by less than planned by President Obama in February.
It also said that spending should be made as "growth-friendly" as possible, with investment in infrastructure, training, housing initiatives and an extension of emergency unemployment benefits.
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