Global economy to slow in 2026, and outlook clouded by war, other uncertainties

The global economy continues to expand, supported by the artificial intelligence (AI) boom, even as high energy prices, trade tensions, policy uncertainty, and structural challenges weigh on activity. Real global GDP is projected to slow from 3.3 percent in 2025 to 3.0 percent in 2026 before picking up to 3.1 percent in 2027 (see figure below), according to analysis presented at the Peterson Institute for International Economics Spring 2026 Global Economic Prospects event.Read More