The International Monetary Fund has downgraded its growth forecast for the US’ economic growth on concerns over Donald Trump presidency’s ability to make policy changes.
The IMF revised down its US gross domestic product growth predictions from 2.3 per cent to 2.1 per cent, while its global economic forecast remains unchanged at 3.5 per cent growth in 2017 and 3.6 per cent in 2018.
The organization said it downgraded US forecast based on “the assumption that fiscal policy will be less expansionary than previously assumed, given the uncertainty about the timing and nature of US fiscal policy changes”.
President Trump came into office after promising increased infrastructure spending and limited taxes and regulations. However, these policies has remained stalled as the administration focuses on other matters such as healthcare regulation and disagreement within the Republican party.
The IMF also downgraded growth forecast for the UK from 2 per cent to 1.7 per cent, due to “weaker-than-expected activity” for the first three months of 2017 following Brexit.