Table of Contents:
Global GDP growth forecast
The global GDP is projected to grow by 3.1% in 2026, following a growth rate of 2.9% in 2025. This steady increase indicates a recovery trajectory as economies rebound from the impacts of the pandemic and geopolitical tensions.
Inflation rates and their implications
Inflation is expected to stabilize around 2.5% in 2026, down from 4.0% in 2025. The tightening monetary policies implemented by Central Banks are anticipated to contribute to this decline.
A lower inflation rate may enhance consumer confidence and spending.
Unemployment rates across major economies
Unemployment rates are projected to decrease to 5.2% globally in 2026, improving from 5.5% in 2025. Countries such as the US and Germany are expected to lead this trend, driven by robust job creation in the technology and renewable energy sectors.
Trade balances and international relations
The trade balances for major economies are likely to shift, with a projected increase in trade deficits for the US, reaching $800 billion, while China is expected to maintain a surplus of $500 billion. These changes may influence international relations and economic policies.
Impacts of fiscal policies on growth
Governments are anticipated to implement expansive fiscal policies, with an average increase in public spending of 4.0% across OECD countries. This injection of capital is expected to stimulate growth, particularly in infrastructure and green technologies.
