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IMF Predicts Brexit will have Negligible Impact on US Growth

The IMF predicts that Brexit will have a negligible impact on U.S. Growth, Reuters reports.   According to the IMF, the dollar has risen less than expected following the vote, stocks have recovered from their post-vote losses, and lower yields on Treasuries have lowered financing costs for individuals and businesses.  As a result, the IMF has not changed its growth estimates for the U.S. of 2.2 percent for 2016 and 2.5 percent in 2017 which were issued the day before the vote.

The IMF did identify a number of challenges facing the U.S., however.  According to Reuters, “[t]he IMF staff report said the United States faces a confluence of forces that will weigh on future gains, including a rising share of the U.S. labor force shifting into retirement, aging basic infrastructure, low productivity gains and labor markets and businesses that appear less adept at reallocating human and physical capital.”  The IMF encouraged the U.S. to take steps to address these longer-term issues.