WASHINGTON (AP) — The International Monetary Fund foresees the U.S. economy growing a modest 2 percent this year, below its previous estimate of 2.7 percent.
That would be nearly identical to the economy's 1.9 percent growth in 2013. A brutal winter and a slowing housing recovery caused the economy to shrink during the first three months of 2014, the IMF noted in a report released Monday.
Recent figures suggest that a "meaningful rebound" will propel growth the rest of 2014, the IMF said. Still, that will only partly offset what many analysts think was a contraction of up to 2 percent last quarter.
The unemployment rate has tumbled to 6.3 percent from 7.5 percent in 12 months. But the IMF warns that U.S. wages remain stagnant and the rate of long-term unemployment high.