Summary of Goldman Sachs Economic Indicators Update Industry Overview - The report focuses on global economic indicators and forecasts, particularly for GDP growth in 2026 and adjustments in various regions and countries. Key Points Global Economic Growth - Goldman Sachs expects global real GDP growth of **2.8% in 2026**, which is above the Bloomberg consensus of **2.6%** [2][4][10] Financial Conditions Index (FCI) - The Global ex Russia FCI increased by **0.3 basis points** due to exchange rate changes [8][26] - The report includes detailed charts on the FCI levels and their weekly changes across various countries [31][36] Current Activity Indicator (CAI) - The Global CAI stands slightly above potential, indicating a positive growth signal [15][49] - December CAI values show: - Global: **+2.7%** - Developed Markets: **+1.5%** - US: **+1.8%** - Euro Area: **+1.0%** - Japan: **+0.8%** [12][53] Country-Specific Adjustments - Significant upgrades and downgrades in GDP forecasts for 2025: - Taiwan: **+2.8 percentage points** - Turkiye: **+1.2 percentage points** [10][104] - Changes in GDP forecasts for 2026 show a decline for Turkiye by **-0.8 percentage points** [105] Inflation Forecasts - Adjustments in inflation forecasts for 2025 and 2026 include: - Core Inflation for Argentina: **+1.4 percentage points** - Core Inflation for Turkiye: **+1.9 percentage points** [96][100] Labor Market Insights - The report discusses the jobs-workers gap, indicating labor demand versus supply across various countries, with notable changes since December 2019 [24][80] Fiscal Policy Impacts - The report analyzes the effect of fiscal policy on real GDP growth, with specific impacts noted for the US and Euro Area [84][88] Additional Insights - The report emphasizes the importance of financial conditions in predicting GDP growth and the transmission of monetary policy to the real economy [114] - It includes a methodology section detailing how various indicators are calculated and interpreted [113] This summary encapsulates the key findings and insights from the Goldman Sachs Economic Indicators Update, providing a comprehensive overview of the current economic landscape and forecasts.