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IMF sees US economy in "good shape", too many in poverty

[WASHINGTON] The International Monetary Fund said on Wednesday that the US economy was "overall in good shape", with growth set to accelerate from recent setbacks despite an overvalued dollar, but the Fund warned that too many Americans were living in poverty.

In its annual review of US economic policies, the IMF said that it expects US growth to be 2.2 per cent in 2016 and 2.5 per cent in 2017, with inflation rising slowly toward the Federal Reserve's goal of two per cent.

"At today's level of the real effective exchange rate, the current account deficit is expected to rise above 4 per cent of GDP by 2020, pointing to the US dollar being overvalued by 10-20 per cent," the IMF said in its report.