NEW YORK, Oct 9 — Global economic uncertainty will continue to be "the new normal," warned International Monetary Fund (IMF) managing director Kristalina Georgieva on Wednesday, reported Xinhua.
The global economy is "better than feared, but worse than we need," she said at the Milken Institute in Washington, the United States (US).
"Global resilience has not yet been fully tested. And there are worrying signs the test may come," Georgieva said.
The trend of tariff policies is becoming a key variable affecting the prospects of the world economy. The full effect of tariffs "is still to unfold".
She also warned that the flood of goods previously destined for the US market but redirected to markets in other countries may trigger a "second round of tariff hikes".
Financial markets generally remain stable in the face of "masking" policy turmoil, and that "if a sharp correction were to occur, tighter financial conditions could drag down world growth."
Georgieva urged the world's policymakers to preserve trade as an engine of global growth.
"Let us pull together in this complex world to deliver smart policies that build strong markets, institutions, and safety nets," she said.
IMF revised the global gross domestic product growth of 2025 down to three per cent in its July update of World Economic Outlook from its previous projection of 3.3 per cent in 2024.
It will update the projections at its 2025 annual meetings in Washington, from October 13 to October 18.
