The U.S. Department of the Treasury released an analysis Thursday of data from the IMF’s latest World Economic Outlook and other international sources that shows that the U.S. economy continues to outpace global peers and has exhibited more strength than forecasters anticipated throughout 2023.
The White House said in a news release three key dimensions were responsible for the positive news: growing economic output, labor market resilience, and slowing inflation.
“The progress we have made on growth, labor markets, and inflation stands out across the globe, and remains an important source of strength for the global economy,” wrote Eric Van Nostrand, Acting Assistant Secretary for Economic Policy, and Tara Sinclair, Deputy Assistant Secretary for Macroeconomics.
“The resilience of the entire global economy is a testament to the President’s economic plan, as well as our work with partners around the world to effectively coordinate efforts to recover from the pandemic and support the global economy,” Van Nostrand and Sinclair said.
“In particular, the U.S. policy environment is a clear contributor to U.S. economic performance,” they added. “The Biden Administration’s focus on supply-side measures via the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act is working to expand our productive capacity to create space for faster growth without stoking inflation.”
The October 2023 IMF World Economic Outlook attributes the improved global outlook partly to the strength of the United States economy.
“Our supply-side investments are not just bolstering the U.S. economy but supporting the global economic outlook as well,” said Van Nostrand and Sinclair.
Other key takeaways from the analysis cited:
- The United States has seen a particularly strong GDP recovery and is on track to return to pre-pandemic trend growth this year.
- Global labor markets continue to strengthen, and the United States has been especially resilient.
- U.S. inflation has cooled sooner and more quickly than in other advanced economies.
Stronger-than-expected U.S. growth continues to drive surprises to the upside in global growth in 2023, and the IMF notes that the likelihood of a hard landing has receded and the downside risks from last spring have moderated.
“While risks for the U.S. economy remain, the progress we have made underscores the value of a swift and growth-oriented policy response while making important investments in our economy’s long-run productive capacity,” they said.