IMF Managing Director: Global economic uncertainty will become the new normal

Imf Managing Director Kristalina Georgieva said in a speech at the Milken Institute, a US think tank, on Wednesday (October 8) that the global economy was better than expected but not at the "required level". She believes that uncertainty has become the new normal and will continue. (Reuters

International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned on Wednesday (October 8) that global economic uncertainty will continue to be the "new normal".

Xinhua News Agency reported that Georgieva said in a speech at the Milken Institute, a US think tank, on Wednesday that the global economy was better than expected but not at the "required level". The resilience of the global economy has not yet been fully tested, and there are worrying signs that the real test may be on the way.

She pointed out that the current world is undergoing profound changes. The changes in factors such as geopolitics, the technological revolution, and population structure, as well as the increasingly serious harm that humans have caused to the Earth, have led to a sharp and continuous increase in uncertainty on a global scale. She believes that uncertainty has become the new normal and will continue.

Georgieva also pointed out that the full impact of the tariff policy has not yet emerged. In the United States, the compression of corporate profits may drive up prices and bring about new inflationary pressures. Meanwhile, a large number of goods originally sold to the US market have been transferred to markets in other countries, which may trigger a second round of tariff hikes.

Georgieva believes that the loose financial environment masks the weak trend. Once valuations experience a significant correction, the tightening of the financial environment will drag down global economic growth and make the situation for developing countries particularly difficult.

In its July World Economic Outlook, the IMF predicted that the global GDP growth rate this year would be 3%, a slowdown from the growth in 2024. The IMF will update its economic growth forecast at its annual meeting in Washington from October 13th to 18th.