Jan Hatzius, chief economist at Goldman Sachs, projects international economic growth to rise slightly from 2.7% in 2026 to 2.8% in 2027. Advanced economies including the U.S., the U.K., and Japan are poised to outpace consensus estimates, while Taiwan and South Korea gain from the tech boom. Meanwhile, Brent crude is expected to fall to $78 per barrel by late 2027 as Middle Eastern supplies normalize. China's anticipated 4.5% expansion faces headwinds from sluggish domestic consumption and prolonged property market woes.
Key points
Artificial intelligence investments are estimated to contribute 0.4 percentage points to…: Artificial intelligence investments are estimated to contribute 0.4 percentage points to global growth and 0.6 percentage points to the U.S. economy.
China is forecast to expand by 4.5%, but ongoing property sector struggles and weak domes…: China is forecast to expand by 4.5%, but ongoing property sector struggles and weak domestic consumer activity continue to limit demand.
Downside risks to the broader outlook remain elevated due to potential Iranian conflict e…: Downside risks to the broader outlook remain elevated due to potential Iranian conflict escalation, widening fiscal deficits, and AI infrastructure financing burdens.
Sources checked by our analysis pipeline: 1
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 growth
A key factor behind the improved outlook is the expected moderation in energy prices. Goldman Sachs' commodity strategists expect Brent crude to fall to $78 per barrel by the end of 2027 as supply conditions in the Middle…
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