IMF Declares that the U.S. Economy is on the Right Path to Recovery

Based on the most recent assessments by the International Monetary Fund (IMF) all the indications are saying that the U.S. economy is on the right path to recovery. The evidence shows that the economy of the United States is definitely gaining traction, attaining recovery and stability, and rising from the throes of the recession.

The IMF has identified that a number of things are greatly influencing the slow pace of economic recovery. The most visible contributors are the flourishing of stocks in the stock market and in house market gains.

Slowly but surely

Supporting an economy that is self sustaining and ripe with opportunities for growth and development has been quite difficult for the most powerful country in the world. Nevertheless, there is now solid evidence that the economy in the United States is getting better. Even though some would consider the growth to be moderate, what matters is that the movement towards recovery is gaining momentum.

The IMF concluded that things will fall into place, though at a very moderate pace. The organization stated that the US is bound to encounter a few more bumps in the road as it persists to put the economy back to its former glory.

What are the factors that contribute to recovery?

The IMF also identified some of the factors that contribute to the glacial movement of the US economic toward stability the most noticeable of which are major gains in house prices and soaring stocks. According to the IMF, the economic growth will be more visible next year with these two factors fueling the gradual acceleration. There are other elements that push the US economy to move forward. The growth this year is partially attributed to the spending cuts implemented by the government as well as cuts in payroll tax.

Job opportunities are rolling in

The level of unemployment is another important determinant of the economic standing of a country. After being hit by the recession, the rate of unemployment in the US went sky-high and affected millions of workers and their families. Now, the IMF predicts that the unemployment rate is slowly becoming more stable. Workers that were laid-off are now returning to the work force. By 2014, the IMF believes that the rate of unemployment will fall dramatically. Laborers can look forward to more job opportunities so that they can support their families.

The Federal Reserve’s contribution

Everyone affected by the recession is doing their part to help bolster the economy of the country. Although times are hard, Americans are carrying on as usual and concentrating on regaining their footing. Talks revolve less about the recession and more on the possibilities brought about by the programs extended to them by the government.

The US government has issued programs that aim to help people affected by the weak economy. The IMF has identified the policy issued by the Federal Reserve as a huge boost in economic stability. The Federal Reserve implemented a policy that kept the interest rates low.

With the continuing economic progress, the IMF is expecting to see a 2.7% increase in US economic growth in the coming year. Finally, it seems that the financial crisis is slowly losing its grip.

Photo Credit: IMF Building