IMF chief warns ‘uncertainty is the new normal' in global economy

Economic Outlook - The head of the International Monetary Fund (IMF) warns of increasing risks in the global economy, stating that "uncertainty is the new normal" [1][3] - The IMF forecasts global GDP growth of 3% for this year, a slight decline from 3.3% in 2024, with updates expected at the upcoming meetings [4] Market Conditions - Despite historic tariffs, the US is projected to avoid recession, with only a slight slowdown in the global economy anticipated [2] - Record gold prices exceeding $4,000 per ounce indicate investor anxiety, alongside exceptionally high valuations for US stocks [2] Financial Stability - The IMF cautions that the resilience of the global economy has not been fully tested, with potential vulnerabilities emerging from the impact of US tariffs [3] - The surge in US share prices, particularly among major tech firms, raises concerns about market corrections and their potential effects on global growth [4][5] Policy Recommendations - The IMF urges policymakers in large economies to address global imbalances, including the US's rising public sector deficit, projected to increase by over $3 trillion due to tax cuts [7][8] - Recommendations for China include reforms to stimulate growth and increase household spending, as private savings remain high [8] European Integration - The IMF calls for the EU to appoint a "single market tsar" to enhance market integration and address public frustration over economic conditions [9]