The global economy has remained resilient in the face of higher tariff rates, although economic uncertainty remains a risk, said International Monetary Fund (IMF) managing director Kristalina Georgieva.
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“Buckle up,” said Georgieva in a speech at an event hosted by the Milken Institute on Wednesday. “Uncertainty is the new normal and it is here to stay.”
Global Growth Strong, but Tariff and Debt Risks Remain
The global economy is set to grow 3% in 2025, driven by strong private sectors, investment in AI, and a lighter-than-expected toll from tariffs. However, Georgieva warns that the full impact of tariffs has yet to hit and could result in higher inflation and lower margins.
“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,” said Georgieva. Gold has soared 52% this year, its strongest performance since 1979.
Furthermore, the IMF chief urged the U.S. to address its federal debt, adding that the country’s debt-to-GDP ratio could soon surpass the record high sustained after World War II. The debt pile currently sits at $37.86 trillion.
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