Be it the Middle East war or the oil and gas supply crisis, the global economy has been having a negative impact for a long time, but now the situation seems to be improving and a big update has come out regarding the global economy. According to Goldman Sachs Research, the world is expected to grow at a growth rate of 2.8% next year in 2027, which is slightly higher than the estimated 2.7% growth in 2026. Many big economies seem to be supporting this pace of economy.
Will provide support from US to UK
Goldman Sachs Research has expressed this estimate in its latest Global Economic Outlook. It said that the global economy will maintain sustained growth next year and especially the USA, Japan And the United Kingdom is expected to perform better than general estimates. However, the investment bank also warned that there are still risks to its outlook, particularly due to geopolitical tensions related to Iran, a rising trade deficit and uncertainty over the next phase of AI investment.
Jan Hatzius, chief economist and head of Goldman Sachs Research, said the global economy could see another year of good but modest growth in 2027, although many of the factors driving economic activity will change in 2026.
Oil supply will become normal!
Goldman has said in its outlook that crude oil prices will have the biggest impact on global economic growth. Shocks in energy supply and rising oil prices affected economic activity in 2026, but this picture may change in 2027. Goldman Sachs expects the pressure to ease next year as global energy supply gradually returns to normal.
The bank’s commodity strategists estimate that Brent crude prices will fall to $78 per barrel by the end of 2027, supported by a gradual recovery and change in supply from the Middle East. Global Liquefied Natural Gas (LNG) prices are also expected to soften.
AI will show wonders in 2027
The second major impact on the global economy will be seen from Artificial Intelligence i.e. AI. Which can remain another big driver of global economic growth. Goldman Sachs estimates that global nominal AI investment will increase to $1.8 trillion in 2027, from $1.1 trillion in 2026. This surge in investment is expected to occur in the first six months of 2027, with AI-related spending continuing to support economic activity. Not only this, AI investment alone can contribute 0.4% to global GDP growth next year.
Due to cheap crude India effect on
Although Goldman Sachs has not shared a separate GDP growth estimate for India in its outlook, the lower global energy price will have a significant impact on the Indian economy. Let us tell you that India is dependent on import of crude oil for its domestic energy needs. In such a situation, the crash of oil prices in the international market can reduce the country’s oil import bill, reduce pressure on current account deficit and provide some relief on domestic inflation.
Not only this, low prices of crude oil in India can also reduce input and transportation costs for business, which will support consumption and improve corporate margins. However, along with the global crude price, the impact of other factors including fluctuations in the Indian currency will also be seen. However, the investment bank expects that if Brent crude reaches $78 per barrel by the end of 2027, it will prove helpful for a big energy importer like India.
US, China And what predictions for Japan?
If we look at Goldman Sachs’ projections for major economies, the Outlook report expects the US, Japan and UK to perform better. The US economic outlook is strong, supported by investment spending. China’s economy is projected to grow by 4.5% in 2027, which is slightly higher than the general estimate of 4.4%.
The bank said that China Export will remain strong, due to which the country’s trade surplus may increase further. However, domestic demand may remain weak due to continued pressure on the property sector and decline in consumer spending.
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Source: www.aajtak.in
