IMF Projects Steady US Growth but Highlights Fiscal Deficit and Tariff Risks

The International Monetary Fund (IMF) projects the US economy to grow steadily at 2.4% in 2026 with unemployment declining and inflation reaching the Federal Reserve's 2% target by 2027. While acknowledging the economy's resilience and productivity gains, the IMF warns that large fiscal deficits and rising public debt—expected to reach nearly 110-140% of GDP by 2031—pose growing stability risks. The Fund also cautions that President Trump's tariffs may dampen economic activity and recommends fiscal consolidation to reduce the current account deficit.