IMF chief warns global economy faces rising uncertainty

International Monetary Fund Managing Director Kristalina Georgieva has warned that the global economy faces heightened uncertainty. Speaking at the Milken Institute on Wednesday, she said: “Buckle up. Uncertainty is the new normal, and it is here to stay.” Her remarks come ahead of the IMF and World Bank annual meetings in Washington, DC next week.

According to Reuters, the IMF expects global growth of 3 percent this year. Georgieva said this outcome reflects decisive economic policies, private-sector adaptation and tariff impacts that have so far been less severe than feared.

She added: “Global resilience has not yet been fully tested. And there are worrying signs the test may come. Just look at the surging global demand for gold.”

On Wednesday, gold prices reached $4,000 an ounce for the first time as investors sought safe-haven assets in response to a weaker dollar and geopolitical risks, Bloomberg reported.

The Wall Street Journal reported that President Donald Trump imposed tariffs in April on imports from nearly all major trading partners, including Canada, Mexico, Brazil and China, as well as smaller nations such as Lesotho. During a meeting with Canadian Prime Minister Mark Carney at the White House on Tuesday, Trump said: “We’re the king of being screwed by tariffs.”

Georgieva said the full effects of the tariffs are still to emerge. “In the US, margin compression could give way to more price pass-through, raising inflation with implications for monetary policy and growth,” she stated. She also warned that diverted goods could lead to “a second round of tariff hikes” elsewhere.

The US Supreme Court will hear arguments next month on whether Trump has the authority to impose some of the tariffs under the International Emergency Economic Powers Act, according to Reuters.

In her remarks, Georgieva pointed to social pressures resulting from economic strains. “The young are taking their disappointment to the streets from Lima to Rabat, from Paris to Nairobi, from Kathmandu to Jakarta. All are demanding better opportunities,” she said.

She also cited declining income mobility in the United States, noting that chances of earning more than one’s parents continue to fall.

Georgieva said Asia should increase internal trade, Africa should implement more business-friendly reforms, and Europe should enhance competitiveness.

For the United States, she urged action on federal debt and household savings. Treasury Department data show federal debt has risen from $380 billion in 1925 to $37.64 trillion in 2025. The Congressional Budget Office reported in July that Trump’s new tax and spending law would add $3.4 trillion to the debt through 2034.

IMF meetings ahead

The IMF, which has 191 member countries, promotes global financial stability, economic growth and poverty reduction. Its annual meetings with the World Bank will bring together finance ministers and central bankers to discuss tariffs, debt and global trade frameworks.

Georgieva concluded that while the global economy has shown resilience so far, risks remain. “Before anyone heaves a big sigh of relief, please hear this: global resilience has not yet been fully tested,” she said.