1:01 9 October 2025
IMF warns on global uncertainty
IMF Managing Director Kristalina Georgieva said the world economy is faring better than expected but cautioned that “uncertainty is the new normal.” Speaking at the Milken Institute, she forecast global growth of around 3% this year, crediting sound economic policies and private-sector adaptability.
Georgieva warned that while tariffs have so far been less damaging than feared, global resilience “hasn’t been fully tested” and could face challenges ahead—evidenced, she noted, by rising demand for gold.
She also highlighted that the full impact of U.S. tariffs introduced under President Donald Trump remains unclear. These could compress corporate margins and push firms to raise prices, potentially stoking inflation. Such pressures, Georgieva added, could influence monetary policy and slow growth, while redirected trade flows might trigger a “second round” of tariff actions globally.
