International Monetary Fund Managing Director Kristalina Georgieva said on Thursday that there is mounting evidence that the United States can avoid recession this year and achieve a “soft landing” for its economy, Report informs, citing Reuters.
Georgieva told reporters that US labor markets remain resilient, and consumer demand remains strong despite increases in interest rates to fight inflation. She said there has been a healthy shift away from excess goods purchases, which had pressured prices back toward services demand, and there were more diversified sources of growth in the economy.
“It gives some argumentation of an expectation that the US would avoid falling into recession,” Georgieva said during her first news briefing of 2023. “And actually, I would say even if it is in technical terms in recession, that will be a very mild recession.”