IMF warns US higher poverty rate

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US have been warned about its high level of poverty in the annual assessment of the International Monetary Fund Economics.

Foundation said about one in seven people living in poverty, and that it needs to be addressed urgently.

It is recommended to increase the minimum wage and offering paid leave to women to encourage them to work.

The report also cut its forecast for economic growth of the country in 2016 to 2.2% compared with the previous forecast of 2.4%.

The slowdown of the global economy and weak consumer spending have been charged.

US economic growth slowed to an annual rate of 0.5% during the first three months of the year, down sharply from 1.4% in the last three months of 2015.

"Social strains"

But the stronger the labor market means that in general, "the US economy is in good shape," said IMF Managing Director Christine Lagarde. Unemployment figures can show the speed of an eight-year low of 4.7%.

However, Ms Lagarde warned that "poverty is not only create significant social tensions, it also erodes the labor force participation and undermines the ability to invest in education and improving health outcomes."

"Our assessment is that, if left unchecked, these four forces - part performance, polarization and poverty - will erode the foundations of growth and keep the profits in the US standard of living," she added.

The report urged the US to invest in education, as well as to implement more social programs such as child care, to help poor Americans get the job done.