The US is likely to feel the effects of sharply slowing growth elsewhere in the world, the IMF’s chief economist has said, in response to signs of a loss of momentum in a broadening range of economies.
Speaking in an interview with reporters before he retires from the Fund at the end of the year, Maurice Obstfeld said that he is not expecting a recession in the US, but he expects growth to progressively slow in 2019 and 2020 as the effect of tax cuts and spending increases diminishes.
“For the rest of the world there seems to be some air coming out of the balloon. That will come back and also affect the US,” he predicted.
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