Times of India13 hours ago·4 min read·medium

‘Solid but unremarkable’: Goldman Sachs sees global GDP growth at 2.8% in 2027

YASHASVI VASISTHA

✦AI Summary

Goldman Sachs projects global GDP growth to reach 2.8% in 2027, driven by declining energy prices and sustained investment in artificial intelligence. While the outlook remains steady, the bank warns that geopolitical tensions, fiscal deficits, and potential saturation in AI-related technology spending pose significant downside risks.

Why it matters

This forecast provides a critical benchmark for investors and policymakers to gauge the sustainability of the current AI-driven economic cycle and the potential for monetary policy shifts. It highlights the growing financial exposure of major tech firms to infrastructure debt, which could impact broader market stability.

✦Dive DeeperCreate a free account to unlock

The global economy is expected to maintain steady growth in 2027, supported by declining energy prices and continued investment in artificial intelligence (AI), although geopolitical tensions, fiscal pressures and uncertainty over technology spending could pose risks, according to a research report by Goldman Sachs.Global gross domestic product (GDP) is projected to expand by 2.8% in 2027, compared with an estimated 2.7% in 2026, said Jan Hatzius, chief economist and head of Goldman Sachs Research.The United States, Japan and the United Kingdom are expected to outperform consensus growth estimates, while South Korea and Taiwan are projected to benefit from continued strength in AI-related exports.“We expect another year of solid but unremarkable GDP growth in 2027, but several of the impulses that shaped global growth in 2026 will look different,” Hatzius said.Lower energy prices and AI spending to support growthA key factor behind the improved outlook is the expected moderation in energy…

Continue reading on Headlinne

Create a free account to read the full article.

Read full article →