WASHINGTON (AP) — The global economy is performing better than expected. Despite the big shock like President Donald Trump’s Tariffsbut the head of international monetary fund He says his resilience may not last.
“Please do your best” Managing Director Kristalina Georgieva He said this in a talk at a think tank on Wednesday. “Uncertainty is the new normal and will continue to be.”
Her comments at the Milken Institute came on a day when gold prices fell. Reached $4,000 per ounce for the first time Investors are seeking safe haven from a weak dollar and geopolitical uncertainty ahead of the IMF and World Bank annual meetings in Washington next week. The gathering of world financial leaders and central bankers is expected to focus heavily on President Trump’s trade sanctions.
The global economy is expected to grow by 3% this year, and Georgieva cites a number of factors as reasons for the decline: countries have put in place decisive economic policies, the private sector has adapted and tariffs have turned out to be less severe than initially feared.
“But before everyone breathes a huge sigh of relief, hear this: The world’s resilience has not yet been fully tested, and there are worrying signs that that test may come. Just look at the soaring global demand for gold,” she said.
Regarding President Trump’s tariffs, she said, “We are yet to see their full impact. Compressing margins in the U.S. could lead to more price pass-through, higher inflation, and implications for monetary policy and growth.”
In April, the Republican administration imposed import taxes on nearly all U.S. trading partners, including Canada, Mexico, Brazil, China and even small African nations. Lesotho. President Trump met with Canadian Prime Minister Mark Carney in the Oval Office on Tuesday and said, “We’re the king of being screwed with tariffs.”
The US has announced trade frameworks with countries such as the UK and Vietnam, but tariffs are creating uncertainty around the world.
“Other regions may see a flood of goods that were previously destined for the U.S. market, triggering a second round of tariff hikes,” Georgieva said.
The Supreme Court is scheduled to hear arguments on President Trump’s rights next month. have the authority to impose Part of his tariff under the International Emergency Economic Powers Act.
In her wide-ranging remarks, Georgieva pointed out that: young people’s dissatisfaction Many young people around the world foresee a future where they earn less than their parents.
“Young people are taking their disappointments to the streets from Lima to Rabat, Paris to Nairobi, Kathmandu to Jakarta, all demanding better opportunities,” she said. “And here in the United States, the chances of growing up to earn more than your parents continue to decline, and the dissatisfaction is palpable here as well. And it is helping to reshape trade, immigration, and many international frameworks and fuel the policy revolution that is currently underway.”
He also called for increased domestic trade in Asia, business-friendly changes in Africa, and stronger competitiveness in Europe.
For the United States, Georgieva called on the government to address federal debt and encourage household savings.
The national debt is the total amount of money the federal government owes its creditors. According to the report, the federal debt has increased from $380 billion in 1925 to $37.64 trillion in 2025. Ministry of Finance data.
Congressional Budget Office reported in july President Trump’s new tax and spending law would add $3.4 trillion to that total by 2034.
The IMF is a lending institution for 191 countries that aims to promote global growth, financial stability, and reduce poverty.
