IMF slashes US growth forecast

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IMF slashes US growth forecast

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The International Monetary Fund has cut its growth forecast for the United States to two percent down from the 2.8 percent it predicted in April.

Its 2015 forecast remains unchanged at three percent and full employment is not expected to be reached until the end of 2017.

“We have revised downwards our growth forecast and that is largely attributed to the poor results of Q1, which are largely but not entirely weather-related. We believe that this slowdown is temporary and better prospects lie ahead,” said Christine Lagarde, IMF’s Managing Director.

In its annual health check of the US economy it recommended that the country increase the minimum wage in order to help fight poverty.

It also urged more spending on infrastructure and education as well as shaking up parts of its tax system to help boost growth.