The IMF has lifted its growth estimates for the US slightly for 2008 and 2009, and says the slowdown in the US economy is not as bad as previously thought.
The IMF forecast annual growth of roughly 1% in 2008 and 0.8% in 2009, compared with a prior estimate of 0.5% and 0.6%, respectively.
'The slowdown in activity in the US has been less than feared, and recovery should begin next year as important headwinds are overcome,' the IMF said in its annual review of the world's largest economy.
The 185-nation institution, which aims to promote financial stability, did not mention recession in its review, after predicting a 'slight' recession only in April, and called on the Federal Reserve to maintain interest rates unchanged.
'Monetary policy settings are now broadly supportive of recovery, and a risk-management approach would suggest that policy should be on hold,' it said.
That recommendation was based on expectations that inflation will be contained, despite soaring commodity prices, in particular crude oil.
