WASHINGTON - The International Monetary Fund believes the U.S. economy will post solid growth this year and next, helped by a sizable boost from tax cuts. But then it says growth will slide as huge budget deficits drag growth far below the Trump administration's goals.

In its annual assessment of the U.S. economy, the IMF says growth will hit 2.9 per cent this year and 2.7 per cent next year. Both are significant increases from last year's 2.3 per cent expansion. However, after an initial boost from the $1.5 trillion tax cut package, the IMF forecasts growth will slow steadily in future years, dropping to 1.4 per cent in 2023.

This forecast is far below the Trump administration, which is predicting its economic program will deliver growth of 3 per cent or better in coming years.