World Economic Outlook Update, January 2026: Global Economy: Steady amid Divergent Forces
World Economic Outlook
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Overview
- The World Economic Outlook Update, January 2026 projects global growth at 3.3 percent for 2026 and 3.2 percent for 2027, revised slightly up since the October 2025 World Economic Outlook.
- Technology investment, fiscal and monetary support, accommodative financial conditions, and private sector adaptability are identified as factors that offset trade policy shifts.
- Global inflation is expected to fall, but US inflation will return to target more gradually.
Projections and drivers
- Growth:
- Global growth is projected at 3.3 percent for 2026.
- Global growth is projected at 3.2 percent for 2027.
- Drivers offsetting headwinds:
- Technology investment
- Fiscal and monetary support
- Accommodative financial conditions
- Private sector adaptability
- Headwinds:
- Trade policy shifts
Risks and uncertainties
- Key downside risks:
- Reevaluation of technology expectations
- Escalation of geopolitical tensions
Policy recommendations
- Policymakers should:
- Restore fiscal buffers
- Preserve price and financial stability
- Reduce uncertainty
- Implement structural reforms
Content in this bundle
- Figures and Tables (XLSX)
- 1. Asia Excluding China