World Economic Outlook Update
Global Economy: Steady amid Divergent Forces
January 2026
Global growth is projected 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 offset trade policy shifts.
Global inflation is expected to fall, but US inflation will return to target more gradually. Key downside risks are reevaluation of technology expectations and escalation of geopolitical tensions.
Policymakers should restore fiscal buffers, preserve price and financial stability, reduce uncertainty, and implement structural reforms.
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