ACCA forecasts moderate global growth in 2026 amid uncertainty

Core Viewpoint - The world economy is expected to grow at a moderate pace in 2026, supported by looser monetary policy, fiscal stimulus, and momentum from the AI sector, but faces downside risks due to global uncertainties [1][5]. Economic Growth Projections - Global growth in 2025 was better than expected despite trade disruptions and policy uncertainty, with resilience anticipated to continue into 2026 [2] - The ACCA forecasts a 3% increase in world GDP for 2026, aligning with the previous year's performance, but emphasizes that risks are skewed to the downside [2] Key Areas of Focus - The report identifies three pivotal areas for the upcoming year: developments in AI, movements in advanced economy bond markets, and changes in global trade dynamics [3] - Early productivity gains from AI investments may alleviate concerns about an AI bubble, but diminishing confidence could lead to market corrections [3] Risks and Challenges - A sharp rise in government bond yields could negatively impact economies by increasing debt-servicing costs, driven by fears regarding debt sustainability and political instability [4] - The report highlights the need to monitor the effects of higher US tariffs and warns of the potential for renewed trade tensions [4]