The U.S. economy is headed for a slowdown caused by a cooling housing market, the International Monetary Fund warned Thursday, and that could drag on global growth, the Associated Press reports. But China’s booming economy shows no sign of slowing down, and that prompted the IMF to raise its global growth forecast for this year and next.
The IMF revised downward its forecast for U.S. economic growth to 2.9 percent for 2007 from an estimate of 3.3 percent in April. This year, the U.S. is seen expanding 3.4 percent, the fund projected in its semiannual World Economic Outlook.
But as U.S. growth appears to falter, much of the rest of the world has picked up steam, it said.
