The International Monetary Fund has just slashed United States economic growth prospects to 2.1% for both 2017 and 2018, even less than the estimates it predicted back in April.
Compare this to what President Trump promised on the campaign trail. Trump said the U.S. would achieve 4% growth – twice the IMF’s estimates. Then when he got into office, the Trump administration slightly downgraded that to just 3% growth. Looks like both of those were wrong.
They then cited their ‘uncertainty’ specifically due to Trump’s policies:
“The major factor behind the growth revision, especially for 2018, is the assumption that fiscal policy will be less expansionary than previously assumed, given the uncertainty about the timing and nature of U.S. fiscal policy changes.”
Trump said he would make it his ‘national goal’ to establish economic growth of 4%, even though he admitted that his own economists didn’t want him to say U.S. was capable of doing better than that.
Trump apparently got the idea that the U.S. could grow at a stronger rate because that’s what’s currently happening in China and India.