Goldman Sachs estimated that AI investment alone could contribute 0.4 percentage points to global GDP growth in 2027. (File Photo)
\n\nThe global economy is expected to see a modest improvement in growth next year, with increased investment in artificial intelligence (AI) and easing energy prices likely to provide fresh impetus to economic activity. Global GDP is forecast to expand by 2.8 per cent in 2027, compared with an estimated 2.7 per cent in 2026, according to Goldman Sachs Research. In its Global Economic Outlook 2027 report, the investment bank said these favourable developments could help counterbalance the effects of tighter financial conditions and a gradual withdrawal of government spending support.
\n\nHowever, the overall expansion is expected to remain moderate, with economic performance varying across major markets.
\n\nJan Hatzius, Chief Economist and Head of Goldman Sachs Research, said, "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."
\n\nA reversal in energy price trends is expected to support global economic activity in 2027. While elevated energy costs acted as a drag on growth during 2026, improving supply conditions could help moderate prices over the coming…
Original source: https://www.timesnownews.com/business-economy
