The global economy is proving more resilient than expected despite major shocks such as President Donald Trump ’s sweeping tariffs , but International Monetary Fund Managing Director Kristalina Georgieva has warned that this strength may not last.
“Buckle up,” Georgieva said during a speech at the Milken Institute on Wednesday, AP reported. “Uncertainty is the new normal and it is here to stay.”
Her remarks came as gold prices hit a record $4,000 an ounce, reflecting investor anxiety over a weaker dollar, rising geopolitical tensions, and the policy outlook ahead of next week’s IMF and World Bank annual meetings in Washington. Trump’s trade penalties are expected to dominate discussions among global finance ministers and central bankers.
The IMF currently forecasts global growth at 3% for the year. Georgieva credited strong policy responses, private sector adaptability, and less severe tariff impacts than initially feared for keeping growth steady.
“But before anyone heaves a big sigh of relief, please hear this: 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,” she cautioned.
Discussing Trump’s tariffs, Georgieva warned that “the full effect is still to unfold.” She said US margin compression could “give way to more price pass-through, raising inflation with implications for monetary policy and growth.”
The Republican administration has imposed import taxes on nearly all major US trading partners — including Canada, Mexico, Brazil, China, and even smaller economies such as Lesotho. “We’re the king of being screwed by tariffs,” Trump remarked Tuesday during a meeting with Canadian Prime Minister Mark Carney.
While the US has announced new trade frameworks with nations such as the United Kingdom and Vietnam, the tariffs have triggered global uncertainty. “Elsewhere, a flood of goods previously destined for the US market could trigger a second round of tariff hikes,” Georgieva said.
Adding to the policy uncertainty, the Supreme Court is scheduled next month to hear arguments on whether Trump has the authority to impose certain tariffs under the International Emergency Economic Powers Act.
Georgieva’s address also touched on social and demographic challenges, warning of deepening youth frustration worldwide. “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. “And here in the US, the chances of growing up to earn more than your parents keeps falling — and here too, discontent has been evident.”
She called for structural reforms to promote internal trade in Asia, business-friendly policies in Africa, and greater competitiveness in Europe. For the United States, Georgieva urged action to curb federal debt and boost household savings.
According to the Treasury Department, the federal debt has surged from $380 billion in 1925 to $37.64 trillion in 2025. The Congressional Budget Office estimated in July that Trump’s new tax and spending law would add $3.4 trillion more by 2034.
The IMF, a 191-member global lender, seeks to foster financial stability, sustainable growth, and poverty reduction worldwide.
“Buckle up,” Georgieva said during a speech at the Milken Institute on Wednesday, AP reported. “Uncertainty is the new normal and it is here to stay.”
Her remarks came as gold prices hit a record $4,000 an ounce, reflecting investor anxiety over a weaker dollar, rising geopolitical tensions, and the policy outlook ahead of next week’s IMF and World Bank annual meetings in Washington. Trump’s trade penalties are expected to dominate discussions among global finance ministers and central bankers.
The IMF currently forecasts global growth at 3% for the year. Georgieva credited strong policy responses, private sector adaptability, and less severe tariff impacts than initially feared for keeping growth steady.
“But before anyone heaves a big sigh of relief, please hear this: 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,” she cautioned.
Discussing Trump’s tariffs, Georgieva warned that “the full effect is still to unfold.” She said US margin compression could “give way to more price pass-through, raising inflation with implications for monetary policy and growth.”
The Republican administration has imposed import taxes on nearly all major US trading partners — including Canada, Mexico, Brazil, China, and even smaller economies such as Lesotho. “We’re the king of being screwed by tariffs,” Trump remarked Tuesday during a meeting with Canadian Prime Minister Mark Carney.
While the US has announced new trade frameworks with nations such as the United Kingdom and Vietnam, the tariffs have triggered global uncertainty. “Elsewhere, a flood of goods previously destined for the US market could trigger a second round of tariff hikes,” Georgieva said.
Adding to the policy uncertainty, the Supreme Court is scheduled next month to hear arguments on whether Trump has the authority to impose certain tariffs under the International Emergency Economic Powers Act.
Georgieva’s address also touched on social and demographic challenges, warning of deepening youth frustration worldwide. “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. “And here in the US, the chances of growing up to earn more than your parents keeps falling — and here too, discontent has been evident.”
She called for structural reforms to promote internal trade in Asia, business-friendly policies in Africa, and greater competitiveness in Europe. For the United States, Georgieva urged action to curb federal debt and boost household savings.
According to the Treasury Department, the federal debt has surged from $380 billion in 1925 to $37.64 trillion in 2025. The Congressional Budget Office estimated in July that Trump’s new tax and spending law would add $3.4 trillion more by 2034.
The IMF, a 191-member global lender, seeks to foster financial stability, sustainable growth, and poverty reduction worldwide.
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