IMF says global economy 'limping along' as it faces new threat from Israel-Gaza war
foxbusiness.comBreitbart economics and finance editor John Carney breaks down Fed Chair Powell's policies on 'Kudlow.'
The International Monetary Fund on Tuesday said the world economy is slowing amid ongoing threats from higher interest rates and the war in Ukraine and warned the tepid recovery faces fresh risks from the eruption of violence in the Middle East.
In its latest World Economic Outlook, the IMF predicted global gross domestic product will grow just 2.9% in 2024, which represents a 0.1% decline from its previous forecast in July – after rising 3% this year. By comparison, world output grew by 3.5% in 2022.
The downgrade comes as the global economy continues to recover from the COVID-19 pandemic, the Russian invasion of Ukraine and the inflation crisis that sent food and gasoline prices skyrocketing.
US FEDERAL BUDGET DEFICIT PROJECTED TO DOUBLE THIS YEAR
Event signage at the annual meetings of the International Monetary Fund and World Bank in Marrakesh, Morocco, Tuesday, Oct. 10, 2023. (Hollie Adams/Bloomberg via Getty Images / Getty Images)
«The global economy is limping along, not sprinting,» IMF Chief Economist Pierre-Olivier Gourinchas said during a press conference at the group's annual meeting.
Gourinchas said it is «too early» to assess the long-term economic impact from the days-old war between Israel and the Palestinian militant group Hamas, according to The Associated Press. The IMF is «monitoring the situation closely,» though Gourinchas noted oil prices have surged by about 4% over the past several days.
A 10% spike in oil prices would reduce global economic growth by 0.15% and increase global inflation by 0.4%, he said.
FOX Business host Larry Kudlow reacts to 123,000 Americans taking second jobs in
Read more on foxbusiness.com
