Global growth to stay strong in 2026; India among fastest-growing major economies: Goldman Sachs

According to Goldman Sachs' Global Economics Analyst Report Macro Outlook 2026, global economic growth is expected to remain strong in 2026, with India remaining one of the fastest-growing major economies. The report forecasts global growth at 2.8 per cent in 2026, higher than the consensus estimate of 2.5 per cent, and supported by stable inflation and easy monetary conditions in many economies.

"We expect sturdy global growth of 2.8 per cent in 2026, versus a consensus forecast of 2.5 per cent. The US is likely to outperform substantially (2.6 per cent vs. 2.0 per cent) because of reduced tariff drag, tax cuts, and easier financial conditions," the report noted.

Emerging markets, including India, are expected to outperform developed countries amid strong domestic demand and favourable structural trends, the report said.

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Goldman Sachs projects India's real GDP growth rate to be around 6.7 per cent in 2026 and 6.8 per cent in 2027, far exceeding consensus growth projections and keeping India one of the world's fastest-growing large economies.

The company estimates China's growth rate to be 4.8 per cent in 2026 and 4.7 per cent in 2027.

It said India's growth momentum continues to benefit from strong domestic consumption, public infrastructure spending and relatively limited exposure to global trade disruptions compared to export-led economies.

The report highlights that while advanced economies like the US and the Euro area are expected to grow moderately, emerging economies like India remain significant contributors to global expansion.

India's performance is also reflected in the IMF's weighted global growth calculations, where faster-growing economies, such as India and China, have a greater weighting.

Regarding inflation, Goldman Sachs estimates that price pressures will ease in most economies by the end of 2026 due to lower commodity prices, improved productivity and reduced supply-side constraints. This environment is likely to allow central banks in several emerging markets to maintain or adopt accommodative policy stances, which could further support growth prospects for countries like India.

However, the report highlights global labour market weakness as a key risk, noting that productivity gains are not translating proportionately into job creation. While this trend is more pronounced in developed markets, a broader global slowdown in employment growth could pose indirect challenges to emerging economies over time.

Overall, Goldman Sachs maintains a positive outlook for emerging markets in 2026, with India as a relatively bright spot amid stable global growth, declining inflation, and favourable financial conditions.

With ANI Inputs