The International Monetary Fund (IMF) on Sunday lowered its economic growth forecasts for the United States to 2.1% for this year and the next.
The forecast is a decrease from the 2.3% for 2017 and 2.5% for 2018 that it had predicted in April.
The forecast has given the American economy a rather shaky outlook for the next two years as it is a far cry from the 4% growth President Trump promised during his campaign.
The IMF in a statement said “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.”
The IMF also listed the U.S. economy’s sluggish start to 2017 — with a first-quarter growth of just 1.4% — as another factor in its slashing of current forecasts.
The downgrade comes as the U.S. prepares to release its growth numbers for the second quarter this week, with economists predicting that growth improved to 2.7%.