The global economy is holding up better than expected despite major shocks such as President Donald Trump’s tariffs, but the head of the International Monetary Fund says that resilience may not last. IMF Managing Director Kristalina Georgieva warned that this resilience may not last, noting that “uncertainty is the new normal.”
Her comments at the Milken Institute come on a day when gold prices hit $4,000 an ounce for the first time as investors seek safe haven from a weaker dollar and geopolitical uncertainty and before the IMF and World Bank hold their annual meetings next week in Washington. Trump’s trade penalties are expected to be in sharp focus when global finance leaders and central bankers gather. The worldwide economy is forecast to grow by 3% this year, and Georgieva is citing a number of factors for why it may not slip below that: Countries have put in place decisive economic policies, the private sector has adapted and the tariffs have proved less severe than originally feared.
