The International Monetary Fund ( IMF) reduced its forecast for the US economy this year, saying that the country should increase the minimum wage to help the poor and provide paid maternity leave for encourage women to enter the labor market.
in its annual review of the US economy, the world body predicted growth of 2.2% compared to 2.4% in 2015 and 2.4% less than it had predicted in April.
However, the director of the IMF, Christine Lagarde , citing the robust labor market, he said that “the US economy is in good condition.” The national unemployment rate last month fell to a low not seen in eight years: 4.7%. Companies have added 200,000 jobs per month in the past year.
US economic growth is better than most other developed countries. The IMF predicts economic growth of 1.5% for the 19 countries using the euro and 0.5% for Japan.
Business US had a sluggish start to the year to performance, an expansion of just 0.8% in the first quarter. The strong dollar hurt exporters as their products became more expensive abroad. Energy companies have reduced their investments due to low oil prices.
However, Lagarde estimated that the United States will have long-term problems such as the aging of its workforce, slow productivity growth and economic inequality.
said the United States is the only developed country in the world that does not offer paid maternity leave and that women tend to participate in the labor market much less than men. Offer paid maternity leave would encourage many women to seek work, Lagarde said.
United States could improve its productivity if the system reform corporate taxes by reducing rates and eliminating defects in the rules allowing inefficiency , the IMF said.
to combat social inequality, the IMF recommended raising the minimum wage and offer tax breaks to the poor.
tcm
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