IMF: U.S. economy to grow by end of year

10.01.09
By James Conroy

Although the nation's unemployment figures continue to rise and Americans continue to struggle with credit card debt and home loans, there is new word that the U.S. economy may be getting back on track and could show marked improvements by the end of the year.

In its World Economic Outlook released this week, the International Monetary Fund (IMF) forecasts that the U.S. economy will begin growing again by the end of this year and predicts that the growth will continue into 2010, according to the Associated Press.

But the report says that the U.S. growth will remain subdued as consumers continue to rein in spending as unemployment and other financial difficulties persist. With that in mind, the AP notes that the IMF's report predicts the economy will grow by 1.9 percent during the fourth quarter and will remain under 2 percent for some time.

Unemployment will continue to be a problem into next year, the report found. While already reaching a 26-year high at 9.7 percent, the IMF forecasts that the unemployment rate in the U.S. will exceed 10 percent in 2010.

The nation's job market continues to be a strain on the economy as a report released earlier this week from ADP finds that another 254,000 jobs were lost in September. According to the ADP National Employment Report, job losses will continue into 2010, but are expected to slow. In fact, the report found that the last two quarters have seen diminished job losses, which may be a sign that the economy is moving in the right direction.

In another sign of a strengthening economy, the ADP reports that September's figure of 254,000 jobs lost was the smallest decline in the job market in 14 months and 23,000 below August's revised decline of 277,000.

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The economy may be inproving by the end of this year