International Monetary Fund Managing Director Kristalina Georgieva said on Wednesday global growth is already slow at 3% and will remain slow in coming years, while high interest rates will act as a further drag.

"Inflation is still high and that requires interest rates to remain high, throwing more cold water on growth," Georgieva said during a panel discussion at the Future Investment Initiative (FII) in Riyadh.

International cooperation in a fragmented world is key for growth, Georgieva said, adding that it is "truly a matter of the highest priority."

"We look at the costs of fragmentation, they are very significant. We have, on numerous occasions, demonstrated we are talking about chopping about 12% off global GDP. Just imagine what we can do as a world with an additional $12, $13 $14 trillion dollars."

More than 5,000 people registered to attend the annual investment conference in Saudi Arabia. (Reporting by Jorgelina do Rosario, editing by Amanda Cooper)