GLOBAL financial markets are heading into 2026 with a cautiously optimistic outlook, supported by easing inflation, selective monetary policy support and a powerful investment cycle driven by Artificial Intelligence (AI), according to the summary of Global Strategy Year Ahead 2026 Reports released by Abakkus.
The report noted that the global economy is emerging from the post-tightening slowdown of 2025 and transitioning towards a more balanced growth phase. While inflation has moderated across regions, it remains sticky enough to keep central banks cautious.
Policymakers are expected to shift toward gradual support rather than aggressive easing, with the US Federal Reserve projected to cut rates modestly, the European Central Bank largely on hold, and Japan continuing its slow normalization, the report noted.
Global GDP growth in 2026 is projected in the range of 2.7 per cent to 3.4 per cent, led by the United States and supported by fiscal stimulus, AI-related capital expenditure and resilient labor markets. — ANI