国际英语新闻：U.S. economic recovery slow, further stimulus needed: IMF

WASHINGTON, July 30 (Xinhua) -- The U.S. economic recovery has been slow and the outlook remains uncertain with rising downside risks, which warrants further policy stimulus to keep recovery on track, the International Monetary Fund (IMF) said Friday.

"Private demand has been sluggish, while the unemployment rate has receded only modestly from near post-Depression highs," the IMF said in its annual assessment of the U.S. economy and policy response.

U.S. jobless rate currently stands at 9.5 percent, a level that the Obama administration called "unacceptably high." High unemployment makes households reluctant to spend more and constrains private expenditure, which accounts for about 70 percent of the overall economy.

"Looking ahead, risks are elevated and tilted to the downside, with particular risks from a double dip in the housing market and spillovers if external financial conditions worsen," the IMF said after its Executive Board concluded consultations with U.S. authorities.

The collapse of the U.S. housing market triggered the worst financial crisis since the 1930s. While other sectors, including manufacture, service and financial industry, have shown gradual improvements since recovery began in the second half of last year, housing market seems to be stubbornly sluggish and continues to drag down the fragile economic recovery.

Meanwhile, sovereign debt crisis in Europe brought a shock to the global financial markets and further tightened credit conditions. This brings more uncertainties to the U.S. recovery.

After rising at an annual rate of about 4 percent in the second half of last year, U.S. real Gross Domestic Product (GDP) increased at a rate of 2.7 percent in the first quarter of this year, and is expected to strike an even more moderate gain in the second quarter.