Blanchard: US economy in 'good shape' because ...

Recovery in good shape in the US: Pro

Olivier Blanchard, the chief economist at the International Monetary Fund, said Tuesday he believes the U.S. economy is in "good shape" despite the organization's lower outlook on it.

"The fundamentals are in decent shape. The banks are in decent shape. Their corporations have cash and households have decreased debt, so the elements you need for sustained growth are there," Blanchard told CNBC's "Squawk on the Street."

Blanchard made his remarks after the IMF said its global growth forecasts remained unchanged. It also warned, however, that the economic recovery remains "moderate and uneven," beset by greater uncertainty and a host of risks, including geopolitical tensions and financial volatility.

The U.S. has recently received a batch of mixed economic data. Last month, the U.S added 126,000 jobs, well below the consensus estimate of 245,000. Nevertheless, producer price index data for March was in line with expectations, rising 0.2 percent month-to-month.

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The economy has also had to deal with a strong dollar. Blanchard, however, said he and the IMF are "not worried about [the dollar. We think it's fine." "If you look at the movements in the exchange rate reflect the differences in monetary policies in different countries."

The greenback has risen nearly 10 percent against a basket of currencies this year, while the euro has shed about 12 percent against it in the same period, according to FactSet.

—Reuters contributed to this report.