IMF: US economic growth to strengthen in 2014

The economies of the United States and the globe are expected to pick up the pace in 2014, according to a new outlook from the International Monetary Fund.

The global organization reported Tuesday that it was slightly more optimistic about future economic prospects, and had upgraded slightly its expectations for the U.S. It now expects the U.S. economy to grow 2.8 percent in 2014, up from a 2.6 percent expectation in October. In 2015, the IMF anticipates the U.S. economy will hit the 3 percent mark.

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Part of the reason the IMF expects U.S. growth to tick upward is reduced fiscal drag from policymakers. The organization cited the recent budget deal that provides some up-front relief to sequester cuts. However, that deal is also weighing on long-term expectations for the U.S. The expected return of those cuts in fiscal 2015 led the IMF to trim 2015 expectations by 0.4 percent.

The IMF estimated that the U.S. economy grew 1.9 percent in 2013, compared to 3 percent worldwide.

Overall, the IMF expects the global economy will grow 3.7 percent in 2014, again up slightly from its October forecast. Much of that growth is expected to come from emerging economies across the globe, slated for 4.9 percent growth this year.