IMF Chief Warns Of Mounting Risks Facing Global Economy, Says ‘Uncertainty Is New Normal’

Last Updated:October 09, 2025, 02:32 IST

IMF chief Kristalina Georgieva warns of rising global economic risks, urges action on instability, and highlights public unrest from Lima to Jakarta ahead of IMF annual meetings.

Kristalina Georgieva. (File Photo/AP)

The chief of the International Monetary Fund (IMF) on Wednesday issued a warning about the increasing risks facing the global economy and said “Buckle up: uncertainty is the new normal”.

A week ahead of the IMF’s annual meetings, its chief Kristalina Georgieva said the world has shown resilience amid US President Donald Trump’s trade war.

The US is now expected to avoid recession, despite the imposition of historic tariffs on many of its trading partners, and the global economy is forecast to slow “only slightly this year and next”, The Guardian quoted her as saying.

She, however, pointed to the growing signs of strain on global economy such as the record gold price.

“Before anyone heaves a big sigh of relief, please hear this: global resilience has not yet been fully tested. And there are worrying signs the test may come,” she said at the Milken Institute in Washington.

She emphasised that the full economic impact of US tariffs “is yet to unfold”. “Buckle up: uncertainty is the new normal and it is here to stay,” she warned.

In its last update of the World Economic Outlook in July, the IMF predicted global GDP growth of 3% for this year. The update on its projections will be released at next week’s meetings.

According to The Guardian, the IMF is urging policymakers in large economies to take action to reduce the risks of instability by addressing global imbalances – including calling on the US to tackle its spiralling public sector deficit.

Highlighting increasing public anger at the economic status quo in some countries, the IMF chief said: “Many people in many places – especially the young – are taking their disappointment to the streets: from Lima to Rabat, from Paris to Nairobi, and from Kathmandu to Jakarta, all are demanding better opportunity.”

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