Global annual growth expected at about 3% over next five years

The global real Gross Domestic Product (GDP) is forecast to expand at an annual rate of about 3% over the next five years,  International Monetary Fund Managing (IMF) Director Kristalina Georgieva said on Tuesday. Georgieva noted that this projection is well below the historical average of 3.8%.

“Governments need to pursue fiscal tightening to create fiscal space and to help with fight against inflation,” she added, per Reuters.

Market reaction

These comments don’t seem to be having a noticeable impact on risk sentiment. As of writing, the S&P 500 Index was up 0.2% on a daily basis.