WASHINGTON, October 8. /TASS/. The global economy is weathering challenges stemming from shocks in trade, geopolitics, technology, and demographics better than expected, though not as well as needed, Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva said.

According to her, amid the policy revolution in the United States affecting trade, migration, and international institutions, along with shifts in geopolitics, technology, and demographics, "Uncertainty is the new normal, and it is here to stay."

She added that the world economy is doing "better than feared, but worse than needed."

The IMF’s World Economic Outlook report, to be released next week, will show only a slight slowdown in growth this year and next, she said. "But global resilience has not yet been fully tested. And there are worrying signs the test may come," she said.

Kristalina Georgieva also added that the impact of US customs tariffs — and retaliatory measures — on the global economy has proven less severe than initially feared, and the world has so far managed to avoid a full-scale trade war. The world has so far managed to avoid sliding into a tit-for-tat trade war, she said adding that the shock from the introduction of tariffs has not been as significant as expected.

According to her, the average import tariff rate in the United States has fallen from 23% in April of this year to 17.5% at present, although it remains the highest globally. Meanwhile, most other countries, with a few exceptions, have largely maintained stable tariff levels even after implementing certain countermeasures. Georgieva cautioned, however, that "the full effect is still to unfold."

On April 2, US President Donald Trump announced the introduction of customs tariffs on products from 185 countries and territories. The US leader subsequently adjusted tariff rates for several of those nations.