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IMF sees sluggish US growth, no recession

The International Monetary Fund sees sluggish economic growth in the United States, but no recession, IMF first deputy managing director John Lipsky said on Friday.

Lipsky also brushed off a fall in the US dollar against major currencies, saying it was quite strong on a broad, trade-weighted basis given US trade with emerging Asia. Asked about the outlook for US growth in an interview with Bloomberg Television, Lipsky said: “At this point we do not expect a recession, but we do expect a very sluggish performance of the economy in the next few quarters.” He added that some impact on Europe and other industrialized countries was to be expected, but emerging economies should hold up well. Later, Lipsky told reporters in Paris that both the euro and the dollar were strong on a broad, trade-weighted basis, but declined comment on bilateral exchange rates. “Our calculations suggest that the euro is on the strong side, but so is the dollar,” he said, noting strong US trade relations with some Asian nations with under-valued currencies. The dollar slid to a record low against the euro and Swiss franc on Friday and also hit a record low against a basket of major currencies and a three-year low against the yen. (Reuters)