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

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

Georgieva said in opening remarks at an IMF economics lecture that governments, particularly in emerging markets, will need to tighten fiscal policy to keep debt under control and to help inflation. They also will face further tightening of financial conditions as inflation persists, and “there may be impact on capital flows,” she said.