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UN Financial Agency Issues Dismal Prediction For World Economy

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Jason Cohen Contributor
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The International Monetary Fund (IMF) issued a grim forecast for the world economy on Tuesday, according to the United Nations agency.

The IMF characterized the world economy as “limping along” as opposed to “sprinting,” and its prediction for growth is the lowest it has been in decades, according to the agency. The IMF projects the world economy’s growth will decelerate from 3.5% in 2022 to 3% in 2023 and 2.9% in 2024. (RELATED: Debt-Laden Companies Are Headed Toward Doom As Interest Rates Take Their Toll)

“What we’re saying also is that 3% is not a global recession, far from it, but it’s also not the kind of growth that we’re used to when looking at the pre-pandemic period, which was more around 3.6, 3.8%,” IMF Chief Economist Pierre-Olivier Gourinchas told CNBC. “So we characterize this by saying the global economy is kind of limping along, it’s not sprinting right now.”

Interest rate hikes to fight inflation have slowed the world economy but have not completely halted its growth, according to the IMF. The probability of a “soft landing” has risen, which is when economic growth slows down without triggering a recession.

The IMF expects that United States unemployment will rise from 3.6% to 3.9% by 2025, according to the agency.

The total number of Americans working in full-time jobs decreased by 22,000 in September while the total number of part-time employees jumped by 151,000.

The IMF did not immediately respond to the Daily Caller News Foundation’s request for comment.

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