US economy drives global growth in latest IMF report

The US economy is the fastest growing among any other member of the Group of Seven (G7), thanks to a significant increase in investment and productivity, the International Monetary Fund (IMF) said yesterday.

The IMF now expects the US economy to grow 2.5% in the fourth quarter from a year earlier, which is higher than its earlier prediction of 2%. In 2023, US output rose by 3.2%.

Consumer spending continued to grow despite high costs and interest rates. The IMF noted that the Federal Reserve’s efforts to control inflation while maintaining jobs have largely been successful.

Investments boost productivity, wages
US investments have surged, especially in technology, green energy, and infrastructure, helping companies become more efficient and productive.

American workers are also more productive compared to other G7 nations. 

Higher real wages, adjusted for inflation, are also driving consumer spending, leading to continued growth.

Between 2016 and 2025, US investment is projected to grow by 3.3% annually, surpassing the 2.3% average growth for other advanced economies.

Energy independence supports growth
Unlike Europe, where high energy costs hamper businesses, the US benefits from stable domestic energy supplies. This has kept businesses competitive, ensuring long-term economic advantages.