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Economic recovery will do little to bring down unemployment rates in Europe, the United States and other developed countries for nearly two more years, the International Monetary Fund projected Wednesday in a report that highlighted the lingering challenges of the worst recession in decades.
Releasing what IMF officials called a "somber" forecast, the agency said government stimulus and other policies remain needed to offset slow private job creation -- evidence of the dilemma policymakers face as they decide whether trimming high government deficits outweighs the risk of undermining employment even further if public programs are cut.