IMF Predicts US Economy to Pick Up Pace

WASHINGTON - U.S. economic activity should pick up for the rest of this year and into 2008 as the drag from a decline in the housing market dissipates, the International Monetary Fund said Friday.

But the IMF warned that growth is uncomfortably close to the 2 percent "stall speed" associated with past recessions even if other accompanying factors -rising unemployment and high interest rates - are not evident.

"We, like the U.S. authorities, expect a favorable outcome for U.S growth," said John Lipsky, the IMF's leading deputy director, presenting the annual snapshot of the U.S. economy provided for under the rules of the 185-nation lending institution.

"We expect …