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Subject

Prospects for the US economy to end-2017.

Significance

The US economy has a split personality as it enters the second half of 2017. The labour market appears fully healed from the deep recession of 2008-09 -- the unemployment rate is at its lowest level in 16 years and there are fewer so-called ‘discouraged workers’ than there were in 2007 -- before the recession began. However, the IMF downgraded yesterday its 2017 and 2018 growth expectations for the US economy to 2.1% for both years from 2.3% and 2.5%, respectively, amid growing scepticism of the prospects for fiscal stimulus.

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