WASHINGTON — The global economy is performing better than many expected despite major shocks such as President Donald Trump’s sweeping tariffs, but its resilience “has not yet been fully tested,” International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned on Wednesday.

“Buckle up — uncertainty is the new normal, and it is here to stay,” Georgieva said during a speech at the Milken Institute in Washington, ahead of next week’s IMF and World Bank annual meetings, where Trump’s trade measures are expected to dominate discussions.

Her remarks came as gold prices surged to a record $4,000 an ounce, signaling investor anxiety over a weakening U.S. dollar and geopolitical instability.

Georgieva said the IMF projects global growth of about 3% this year, supported by decisive policy responses, private-sector adaptation, and the fact that U.S. tariffs have so far proven less disruptive than initially feared.

“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 cautioned. “Just look at the surging global demand for gold.”

Trump’s administration imposed tariffs on nearly all U.S. trading partners in April, including Canada, Mexico, Brazil, China, and even Lesotho.

“We’re the king of being screwed by tariffs,” Trump said Tuesday during a meeting with Canadian Prime Minister Mark Carney.

Georgieva said the “full effect” of Trump’s tariffs is still unfolding, warning that higher production costs in the U.S. could eventually “raise inflation with implications for monetary policy and growth.”

Globally, she said the redirected flow of goods could trigger “a second round of tariff hikes” as countries react to shifting trade patterns.

The U.S. Supreme Court is set to hear arguments next month on whether Trump had the authority to impose certain tariffs under the International Emergency Economic Powers Act.

Georgieva also pointed to rising youth discontent worldwide, warning that declining economic mobility is fueling social unrest.

“The young are taking their disappointment to the streets from Lima to Rabat, from Paris to Nairobi,” she said, urging governments to expand opportunities and competitiveness.

She called for more internal trade in Asia, business-friendly reforms in Africa, and greater competitiveness in Europe, while urging the U.S. to address its mounting national debt, which has ballooned to $37.6 trillion.

According to the Congressional Budget Office, Trump’s new tax and spending law will add $3.4 trillion to the federal debt by 2034.

“The U.S. must encourage household savings and adopt responsible fiscal policies to secure long-term stability,” Georgieva said.

The IMF, a 191-member organization, works to promote global financial stability and sustainable economic growth while helping nations reduce poverty. — Agencies