According to Goldman Sachs‘ Global Economics Analyst Report – Macro Outlook 2026, India is predicted to maintain its robust economic pace over the next two years, surpassing both global and consensus projections. Even if the world economy is still stable but cautious, the research shows that India’s economy is among the fastest-growing major economies.
In 2026, it is anticipated that global economic growth will continue to be robust due to the reduction of inflationary pressures and the improvement of monetary circumstances in several areas. In contrast to the average projection of 2.5%, Goldman Sachs predicts global GDP growth of 2.8% in 2026. It is anticipated that better financial circumstances, fewer trade-related obstacles, and increased domestic demand in some economies would propel this stability.
According to the research, the United States is expected to do better than anticipated, with growth predicted at 2.6% as opposed to the consensus forecast of 2.0%. This improved performance is anticipated to be influenced by elements including less tariff-related effect, support for tax policy, and more favorable financial circumstances.
India’s economic prospects are still promising
Emerging markets are predicted to fare better than developed economies in this larger global environment, with India emerging as a major development engine. India’s real GDP growth is predicted by Goldman Sachs to be around 6.7% in 2026 and 6.8% in 2027, which is much higher than the mainstream predictions and solidifies its place among the fastest-growing big economies in the world.
Strong domestic consumption, ongoing public infrastructure investment, and comparatively less reliance on international commerce than export-driven countries are all factors contributing to India’s steady economic trajectory. India is more resilient in an unpredictable global environment because to this protection from interruptions in foreign commerce.
By contrast, China’s development is expected to be moderate, with GDP increase predicted to be 4.8% in 2026 and 4.7% in 2027. India’s quicker pace increases its relative relevance in IMF-weighted global growth calculations, even though China still contributes significantly to global growth.
Global growth is driven by emerging markets
The research emphasizes that developing economies will continue to play a crucial role in the evolution of the world economy, even while developed economies like the US and the EU are predicted to see modest growth. Because of their size and rate of expansion, nations like China and India are given more weight when calculating global production, which increases their total influence on the global economy.
In terms of inflation, Goldman Sachs predicts that by the end of 2026, pricing pressures will be lessened in the majority of economies. Softer commodity prices, increased productivity, and the progressive resolution of supply-side limitations are anticipated to promote this trend. These circumstances could make it possible for central banks to continue or implement accommodating monetary policies, which would further boost economic prospects, especially in emerging nations.
Global growth is driven by emerging markets
While major economies like the US and the EU are expected to have moderate growth, the research highlights that developing economies will continue to play an important role in the evolution of the global economy. Countries like China and India are given greater weight when calculating global output due to their size and rate of expansion, which boosts their overall effect on the global economy.
In terms of inflation, Goldman Sachs projects that most economies will see a reduction in price pressures by the end of 2026. This trend is expected to be supported by softer commodity prices, higher productivity, and the gradual elimination of supply-side constraints. Softer commodity prices, increased productivity, and the progressive resolution of supply-side limitations are anticipated to promote this trend. These circumstances could make it possible for central banks to continue or implement accommodating monetary policies, which would further boost economic prospects, especially in emerging nations.
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