066: Market update: 2026 Economic Forecasts

Major institutions forecast modest global GDP growth for the coming year, below historical averages, supported by easing inflation and resilient labour markets but constrained by trade tensions, geopolitical risks, and policy uncertainty.

Advanced economies are expected to lag, while emerging markets and key developing nations provide stronger momentum. Inflation should continue moderating, with central banks adopting cautious easing stances. Energy prices face downward pressure, while equities show a generally bullish outlook driven by earnings growth and technological advances, though risks like trade escalation remain.

Overall, the year ahead points to steady, if unspectacular, economic progress amid a fragmented global environment.