Artificial intelligence becomes new growth engine as resilience continues in global economy

Despite geopolitical tensions, high energy prices, and tight monetary policies, the global economy has shown resilience above expectations, with the 2026 growth forecast raised to 2.6 percent.

Global Growth Forecasts Upgraded

International financial institution Citi Research announced in its latest report that the global economy is painting a more resilient picture than expected despite all the challenges it faces.

Accordingly, the bank raised its global growth forecast for 2026 to 2.6 percent, while expecting this rate to reach 2.8 percent for the coming year.

Artificial Intelligence Investments Support the Economy

The most striking element in the report was that investments in the field of artificial intelligence have transformed into a global growth engine extending from the US to Asia.

Artificial intelligence investments in the United States, which were around 300 billion dollars last year, reached an annualized average of 466 billion dollars in the first half of this year.

Geopolitical Risks and Energy Shock Pressure

Ongoing conflicts in Iran and Ukraine, alongside oil hovering around 100 dollars a barrel, remain among the main risk factors weighing on the global economy.

This energy shock and limited refinery capacity caused the global headline inflation forecast for this year to be revised up to 3.5 percent.

Tight Monetary Policy from Central Banks

Rising energy prices and inflationary pressures continue to shape the monetary policy steps of central banks.

While new rate hikes from the European Central Bank are anticipated, the Bank of Japan is also expected to raise its interest rate to 2 percent by the end of next year.