IMF’s Georgieva expects global growth around 3% for next 5 years

WASHINGTON: International Monetary Fund Managing Director Kristalina Georgieva said on Tuesday that the IMF expects global growth of around 3 percent annually for the next five years, well below historical averages of about 3.8 percent, which may pressure capital flows.

In opening remarks at an IMF economics lecture, Georgieva said that governments, particularly in emerging markets, will need to tighten fiscal policy to keep debt under control and help inflation.

They also will face further tightening of financial conditions as inflation persists, and “there may be impact on capital flows,” she said.