The International Monetary Fund sharply raised its forecast for US economic growth for 2021 to 7% on the fast recovery from the COVID-19 pandemic and the assumption that much of President Joe Biden's plans for infrastructure and social spending will be adopted.

The IMF's latest forecast, which assumes the fastest growth in the US since 1984, compares to its April forecast of 4.6% growth. The IMF raised its forecast for US GDP growth for 2022 to 4.9% from its previous forecast of 3.5%, Reuters reported.

New forecasts suggest that the US Congress will pass the Biden administration's plans for US job creation and a plan for infrastructure, social spending, and tax reform this year.