The Washington Free Beacon reported:
The International Monetary Fund downgraded the economic growth outlook for the United States to 1.6 percent in 2016, which is the largest one-year drop seen for an advanced economy, according to the Fund’s World Economic Outlook report.
According to the report, the United States grew at a rate of 2.6 percent in 2015 and is projected to slow to 1.6 percent in 2016, a decline of 38 percent. The United States’ decline in growth is the largest one-year drop seen in all of the advanced economies such as the United Kingdom, Canada, Germany, Italy, and Spain.
“Softer-than-expected activity in the second half of 2015 and the first half of 2016 points to some loss in momentum in the United States, despite a mildly supportive fiscal stance and a slower projected pace of monetary policy normalization,” the International Monetary Fund stated.
“A prolonged inventory correction cycle and weak business investment has prompted a downward revision of the 2016 forecast to 1.6 percent,” according to the IMF.