Bank of America Updates 2026 and 2027 Global Growth Forecasts
BofA economists Claudio Irigoyen and Antonio Gabriel updated global growth and inflation expectations, sharing insights on Fed policies.
In a report prepared by Bank of America economists Claudio Irigoyen and Antonio Gabriel, global growth forecasts for 2026 and 2027 were revised while the persistence of global inflation was emphasized.
Global Growth and Inflation Expectations
The report prepared by economists Claudio Irigoyen and Antonio Gabriel projected that global growth will reach 3.3 percent in 2028. It was stated that global inflation is expected to be slightly more persistent than initially thought.
Fed Monetary Policy Projections
It was noted that the expectation of sticky inflation supports the view that monetary policy rates need to remain higher, including the Fed rate hikes set to begin later this month.
Factors Supporting Growth and Creating Risks
While artificial intelligence investments and exports rank among the main drivers supporting global growth, disruptions in traffic through the Strait of Hormuz and tightening financial conditions create uncertainty over the outlook.
Distribution of Regional Growth Forecasts
BofA slightly lowered its US growth forecast while raising its 2026 growth forecast for the Eurozone by 30 basis points to 0.8 percent. The largest upward revision in the 2026 global growth forecast stemmed from technology exporters in emerging Asian economies.