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IMF projects 'solid' US recovery in mid-2010

16 Jun 2009 12:12 AM

The International Monetary Fund says the US economy is set to grow more strongly than previously thought .. with a solid recovery from recession in mid-2010.

But it's also cited risks .. notably from the housing crisis and rising interest rates.

In its annual report on the world's biggest economy .. the IMF projected gross domestic product will shrink at an annualised rate of 2.5 per cent in 2009 .. less sharply than the 2.8 per cent contraction estimated in April.

Annual growth will return in 2010 .. at a weak 0.75 per cent pace .. compared with the prior estimate of flat activity .. adding it considers the dollar overvalued.

AAP RTV jnb/psm/