Goldman Sachs Forecasts 2.8% Global Economic Growth in 2026

New York | EcoPulse24

Goldman Sachs has forecasted that the global economy will grow by 2.8% in 2026, exceeding the financial market average estimate of 2.5%. According to the bank's latest economic report, most major economies are expected to achieve growth rates at or above previous estimates. This growth will be supported by improving financial conditions and increased disposable household income in advanced economies, despite persistent structural challenges in some key regions.

The report notes that labor markets in advanced economies are currently experiencing notable weakness, with job growth falling well below 2019 pre-pandemic levels. This weakness is partly attributed to a sharp decline in migration rates, leading to slower labor force growth, particularly evident in the United States. Goldman Sachs emphasized that ongoing geopolitical tensions and potential shifts in trade policy pose significant risks to the growth outlook, including the possibility of higher tariffs on Chinese imports and automobiles amid expected political changes in the US administration.

In previous reports, the bank had projected global economic growth of 2.7% for 2025, with the United States continuing to outperform other advanced economies at a growth rate of 2.4-2.6%, supported by productivity gains and improved real incomes. In contrast, the euro area faces limited growth prospects, not exceeding 0.8%, due to high energy costs, Chinese competitive pressures, and fiscal austerity measures. Meanwhile, China's economic growth is expected to slow to 4.5% in 2025, impacted by weak consumer demand, real estate sector challenges, and elevated US tariffs.