The global economy is facing a period of ongoing change. Its future feels more uncertain than ever before. Kristalina Georgieva, who leads the International Monetary Fund (IMF), recently pointed this out. She believes that living with this uncertainty will soon become our “new normal.”
Speaking on October 9, 2025, Georgieva shared her thoughts. She mentioned that the world’s economy is doing better than some had expected. However, it is not performing as well as it truly should be. She added that the global economy has not faced its toughest challenges yet. But signs suggest those tests might be just around the corner.
One big concern she highlighted is about tariffs, which are taxes on imported goods. These policies are really shaking up the world economy. Their full impact, she noted, has not shown up yet. There’s a worry that many products once heading for American markets are now going to other countries. This shift could start a whole new wave of tariffs from those nations.
For now, global financial markets seem mostly steady. This is true even with all the policy changes happening around the world. However, Georgieva warned that things could change quickly. If a sudden correction happens, it would make money harder to get. This would slow down economic growth across the globe.
Georgieva urged leaders everywhere to think smartly about trade. She sees trade as a powerful engine for growing economies. Policymakers should focus on smart, fair decisions. The IMF has already adjusted its forecast for 2025. It now expects global economic growth to be 3%. This update came in their July report on the world’s economic outlook.