IMF Chief Warns ‘Uncertainty is the New Normal’ as Global Economy Faces Tests
WASHINGTON – The global economy is bracing for continued instability, according to International Monetary Fund (IMF) Managing Director Kristalina Georgieva, who stated Wednesday that “uncertainty is the new normal and it is here to stay.” Her remarks came as gold prices surged to a record $4,000 an ounce, signaling investor anxieties over a weakening U.S. dollar and escalating geopolitical tensions.
despite a current forecast of 3% global economic growth for the year, Georgieva cautioned that this resilience remains untested and perhaps vulnerable. Factors supporting the forecast include decisive economic policies implemented by various nations, adaptation within the private sector, and tariffs proving less damaging than initially anticipated. Though, she emphasized the need for vigilance, pointing to the rising demand for gold as a “worrying sign” that challenges may lie ahead.
Georgieva addressed the impact of former President TrumpS trade penalties, noting that their full effects are still unfolding. She specifically warned that in the U.S., “margin compression could give way to more price pass-through, raising inflation with implications for monetary policy and growth.”
The IMF chief’s comments precede next week’s annual meetings of the IMF and World bank in Washington, where Trump‘s trade policies are expected to be a central topic of discussion among global finance leaders and central bankers.
