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IMF Head Kristalina Georgieva has warned on the global economy.

Despite major shocks like President Donald Trump's tariffs, the global economy is in better shape than expected, but the boss of the International Monetary Fund says this resilience may not last long. In a speech at a think tank on Wednesday, IMF MD Kristalina Georgieva said, tighten your belts. Uncertainty is now the norm and it is forever. His comments at the Milken Institute came on a day when gold prices reached $4,000 an ounce for the first time.

Investors are looking for safe investments to avoid the weak dollar and geopolitical uncertainty. Apart from this, annual meetings of IMF and World Bank will also be held in Washington next week. When global financial leaders and central bankers gather, Trump's tariffs are expected to be hotly debated.

The global economy is expected to grow by 3 percent this year, and Georgieva gives several reasons why it will not fall below this. In which countries around the world have implemented decisive economic policies, the private sector has adapted itself to the new environment and tariffs have proven to be less severe than previously feared.

But before anyone breathes a sigh of relief, he added, please hear this: this kind of resilience has not yet been fully tested. And there are worrying signs that a test may be coming. Just look at the increasing global demand for gold. Those who are aware of this.

The effect of Trump's tariffs will be visible now

Regarding Trump's tariffs, he said that its full impact is yet to be revealed. In the US, this impact on prices may be seen due to reduction in margins, which may increase inflation and impact monetary policy and growth. The Republican administration in April imposed tariffs on nearly all of America's trading partners, including Canada, Mexico, Brazil, China and even the small African country of Lesotho. During a meeting with Canadian Prime Minister Mark Carney in the Oval Office on Tuesday, Trump said that we are at the forefront of those troubled by tariffs.

Although the US has announced some trade frameworks with countries like the United Kingdom and Vietnam, the tariffs have created uncertainty across the world. On the other hand, a flood of goods destined for the US market could lead to a second round of tariff increases, Georgieva said. The Supreme Court will hear arguments next month on whether Trump has the authority to impose some of his tariffs under the International Emergency Economic Powers Act.

dissatisfaction among youth

Georgieva also pointed to the dissatisfaction prevalent among youth around the world. He said that many youth are imagining a future where they will earn less than their parents. He said that youth are taking their frustrations to the streets from Lima to Rabat, from Paris to Nairobi, from Kathmandu to Jakarta, all demanding better opportunities. Young people in America are becoming less likely to grow up and earn more than their parents, and here too, the dissatisfaction is clearly visible. This has helped accelerate the policy revolution now unfolding, which is reshaping trade, immigration and many international frameworks.

American debt is also a big problem

He also called for more internal trade in Asia, more business-friendly changes in Africa and more competition in Europe. For the United States, Georgieva urged the government to address the federal debt problem and encourage domestic savings. The national debt is the total amount that the federal government owes to its creditors. According to Treasury Department data, the federal loan has increased from $380 billion in 1925 to $37.64 trillion in 2025. The Congressional Budget Office reported in July that Trump's new tax and expenditure law would add $3.4 trillion to this total by 2034. The IMF is a lending organization of 191 countries that seeks to promote global growth and financial stability and reduce poverty.