Summary
Global economic growth is expected to cool slightly in 2026, according to the latest World Economic Outlook from the International Monetary Fund. By the numbers, the World Economy is now expected to expand at a 3.1% rate in 2026, down from the forecast 3.2% rate in 2025 and the recorded 3.4% rate in 2024. While the differences may be imperceptible, these rates are all lower than the long-term historical global growth rate of 3.8%, due to the recent impact of tariffs and trade wars, onshoring, inflation, and higher interest rates. For advanced economies, growth is forecast at 1.6% in 2026, the same rate as in 2025. These forecasts have been lowered in recent months due to trade wars. Among the advanced regions, the U.S. economy is expected to grow the fastest next year (at a 1.9% rate), while Europe’s forecast is for 1.1% growth and Japan is estimated at 0.6%. For emerging economies, growth forecasts call for 4.0% in 2026. The clear leaders are expected to be India and China, with average growth for the two years of 6.4% and 4.2%, respectively. These growth nations have different drivers: population growth in India, which points toward commodity and industrial-based infrastructure
