IMF sees 'buoyant' US economy accelerating this year but warns of risks from tariffs, rising debt - AP News
AP News
February 25, 2026
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The International Monetary Fund (IMF) has projected robust growth for the U.S. economy in 2023, describing it as "buoyant" and accelerating compared to previous years. However, the global financial body has cautioned against significant risks, including trade tensions from tariffs and growing concerns over rising debt levels. The IMF's outlook highlights a mixed picture of economic strength and potential vulnerabilities.
The U.S. economy is benefiting from strong consumer spending, tax cuts, and a resilient job market, with unemployment rates at multi-decade lows. These factors have contributed to a robust expansion in key sectors such as manufacturing and services. Additionally, exports remain a bright spot despite global trade uncertainties. The IMF's positive outlook reflects the strength of these drivers, which are expected to sustain growth momentum.
However, the risks associated with tariffs and trade policies pose significant challenges. Tariffs imposed on imports from major trading partners could lead to costly trade conflicts, disrupting supply chains and raising prices for consumers. Furthermore, while U.S. federal debt has not yet reached a critical threshold, rising borrowing costs and an aging population could make servicing this debt increasingly difficult over time.
These risks are particularly concerning because they could undermine the sustainability of the current economic expansion. If unresolved, trade tensions and high debt levels could hinder future growth and complicate efforts to maintain fiscal stability.
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Originally published on AP News on 2/25/2026