President of the International Monetary Fund Kristalina Georgieva speaks during a joint press conference as part of the closing session of the New Global Financial Pact Summit, in Paris on June 23, 2023. (POOL / AFP)
WASHINGTON - International Monetary Fund Managing Director Kristalina Georgieva said on Tuesday that the IMF expects global growth around 3 percent annually for the next five years, well below historical averages of about 3.8 percent, 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.
Governments will face further tightening of financial conditions as inflation persists, and "there may be impact on capital flows," Georgieva said
They also will face further tightening of financial conditions as inflation persists, and "there may be impact on capital flows," she said.
The IMF in April trimmed its 2023 global growth outlook slightly as higher interest rates cooled activity but warned that a severe flare-up of financial system turmoil could slash output to near recessionary levels.
The IMF is now forecasting global real GDP growth at 2.8 percent for 2023 and 3.0 percent for 2024, marking a sharp slowdown from 3.4 percent growth in 2022 due to tighter monetary policy.
Both the 2023 and 2024 forecasts were marked down by 0.1 percentage point from estimates issued in January, partly due to weaker performances in some larger economies as well as expectations of further monetary tightening to battle persistent inflation.
Copyright 1995 - 2023. All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily. Without written authorization from China Daily, such content shall not be republished or used in any form.
HONG KONG NEWS