International Monetary Fund Director Kristina Georgieva predicted that the global economy would grow at an annual rate of 3 percent over the next five years. "These levels are lower than the historical averages of 3.8 percent, which may put pressure on capital inflows," Georgieva said.
She added: Governments, especially in developing markets, will need to tighten fiscal policy to control debt and help inflation. Those governments will also face further tightening in financial conditions as inflation continues and could have an impact on capital flows.
The International Monetary Fund had lowered its forecast for global economic growth for 2023 and 2024 by about 0.1 percent in April, compared to its expectations in January, expecting the global economy to grow by 2.8 percent this year, and 3 percent in 2024.
Source (CNBC Arabic Website, Edited)
