The United States economy will be virtually stagnant through much of 2008, the International Monetary Fund predicted Friday, significantly raising its growth forecast of only three months ago that had suggested a recession was likely, according to DPA. The IMF said growth over this year would be a little above 1 per cent, up from an April forecast of 0.5 per cent. For 2009, the international crisis lender expects US growth of 0.8 per cent, compared to 0.6 per cent in April. In its annual staff report on the US economy, IMF economists praised US lawmakers for a swift policy response to the housing and financial crisis that had prompted a drastic economic slowdown in the United States. The Federal Reserve has slashed interest rates by 3.25 percentage points since September, but investors have speculated the central bank could raise its benchmark rate again at its board meeting next week, in response to increasing inflation fears.
