IMF Forecasts Robust US Economic Growth, But Warns Of Rising Government Debt
Portfolio Pulse from Piero Cingari
The IMF's World Economic Outlook forecasts robust growth for the US economy, with GDP in 2023 expected to surpass pre-pandemic levels. The US economic growth for 2023 is estimated at 2.1%, a 0.3 percentage point increase from previous estimates. Unemployment is expected to rise modestly from 3.6% to 3.9% by 2025. However, the IMF warns of rising government debt due to expansionary fiscal policy, with debt expected to increase from 123.3% of GDP in 2023 to 137.5% by 2028. The 10-year government bond yield is projected to average 3.8% in 2023 and increase to 4.0% in 2024. The US 10 Year Note ETF (NASDAQ:UTEN) has fallen by 9% in 2023.

October 10, 2023 | 3:10 pm
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The US 10 Year Note ETF (NASDAQ:UTEN) has fallen by 9% in 2023, potentially due to the projected increase in the 10-year government bond yield.
The fall in the US 10 Year Note ETF (NASDAQ:UTEN) could be attributed to the projected increase in the 10-year government bond yield. As yields rise, bond prices fall, which could negatively impact the performance of bond ETFs like UTEN.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80