Global GDP growth is projected to remain broadly stable at 2.9% in 2026 before edging up to 3.0% in 2027, sustained by robust technology-related
In the United States, a modest economic tailwind fueled by expansionary fiscal policies and rate cuts will help push growth to 2.2% in 2026, write RSM US Chief Economist Joe Brusuelas and Economist Tuan Nguyen. * **Australia:** The economy will remain resilient amid global uncertainties, producing steady but modest growth of 2%, writes RSM Australia economist Devika Shivadekar. For this reason, we are attaching a 25% probability that growth will increase to 2.5% or higher as inflation eases and the Fed pushes its policy rate to 3% more quickly than investors are pricing in. Should productivity improve, those gains would create the conditions for a quicker return to the Fed’s 2% inflation target, which would provide the ingredients for stronger growth, lower Fed rates and a decline in the 10-year Treasury yield. The combination of a loosening labor market, slower pay growth and lower inflation will allow the Bank of England to cut interest rates in December and potentially twice more next year, taking rates to 3.25%.
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Real GDP growth in 2026 is projected to be stronger in the current projections, partly because of the effects of the 2025 reconciliation act. In
# World Economic Outlook Update. World Economic Outlook Update, January 2026: Global Economy: Steady amid Divergent Forces. #### Resilient growth as technology and adaptability offset trade policy headwinds. World Economic Outlook Update, January 2026: Global Economy: Steady amid Divergent Forces. Global growth is projected at 3.3 percent for 2026 and 3.2 percent for 2027, revised slightly up since the October 2025 World Economic Outlook. World Economic Outlook Update, January 2026: Projections Table. ###### World Economic Outlook Update, October 2025: Three Essential Questions. ###### Press Briefing: World Economic Outlook, October 2025. ###### World Economic Outlook, October 2025: Key Facts. ###### World Economic Outlook Update, October 2025: Three Essential Questions. ###### Press Briefing: World Economic Outlook, October 2025. ###### World Economic Outlook, October 2025: Key Facts. ###### World Economic Outlook Update, October 2025: Three Essential Questions. ###### Press Briefing: World Economic Outlook, October 2025. ###### World Economic Outlook, October 2025: Key Facts. Regional Economic Outlook Reports, All Regions.
Total population growth in Maine and New Hampshire kept pace with the nation owing to strong domestic migration inflows, while Vermont saw domestic migration outflows.](https://economics.td.com/domains/economics.td.com/images/reports/sef/2026-mar/chart3.png). Over the past 40 years, New jersey's unemployment rate has only risen to this level during recessions.](https://economics.td.com/domains/economics.td.com/images/reports/sef/2026-mar/chart4.png). Job growth in the Upper and Lower South Atlantic is generally firmer than in New England and the Mid Atlantic, underscoring a relative strength in the Carolinas.](https://economics.td.com/domains/economics.td.com/images/reports/sef/2026-mar/chart8.png). Year over year job growth has eased also eased as a result, though at around 1.4% it remains one of the better showings in the region.](https://economics.td.com/domains/economics.td.com/images/reports/sef/2026-mar/chart9.png). Florida’s domestic inflows have cooled sharply since 2022, contributing to a broader deceleration in the state's population growth.](https://economics.td.com/domains/economics.td.com/images/reports/sef/2026-mar/chart10.png). Price growth momentum has improved alongside a slightly better outrun in the national trend.](https://economics.td.com/domains/economics.td.com/images/reports/sef/2026-mar/chart11.png). With the main pillar supporting population growth – net international migration – expected to ease further, Florida population growth is projected to slow further this year.](https://economics.td.com/domains/economics.td.com/images/reports/sef/2026-mar/chart13.png).
In addition, as I noted in an article last month entitled *“Why Stocks are Outperforming the Economy”*, the collective impact of structural changes such as increasing inequality, the rise of defined contribution retirement plans and embedded capital gains are pushing money into the stock market while deterring investors from cashing out. Not only is this very likely to cut estimated job growth in the year that ended in March 2025, but it will likely reduce job growth thereafter, an issue which we address when projecting monthly job gains for 2026 and 2027. We assume that this will reduce the effective tariff rate on goods from 11.0% entering 2026 to 7.5% by the end of the year, lowering inflation and boosting economic growth but also contributing to a deteriorating fiscal situation. However, we expect that lower tariff rates and fading fiscal stimulus in late 2026 cause CPI inflation to fall to 2.2% year-over year by the fourth quarter and to hover close to that level into 2027, allowing the Fed to finally achieve its 2% consumption deflator objective.
. . * [Assumptions and Conventions](https://www.imf.org/-/media/files/publications/weo/2026/april/english/assumandconv.pdf). * [Executive Summary](https://www.imf.org/-/media/files/publications/weo/2026/april/english/execsum.pdf). * [Foreword](https://www.imf.org/-/media/files/publications/weo/2026/april/english/foreword.pdf). * [IMF Executive Board Discussion of the Outlook](https://www.imf.org/-/media/files/publications/weo/2026/april/english/execboard.pdf). * [Blog](https://www.imf.org/en/blogs/articles/2026/04/14/war-darkens-global-economic-outlook-and-reshapes-policy-priorities). * [April 2026 Database](https://data.imf.org/en/datasets/IMF.RES:WEO). [Download Table](https://www.imf.org/-/media/images/imf/publications/weo/2026/april/english/weo-april-2026-projections-table.jpg). . [](https://www.imf.org/-/media/files/publications/weo/2026/april/english/ch1.pdf). * [Read Chapter 1](https://www.imf.org/-/media/files/publications/weo/2026/april/english/ch1.pdf). * [Chapter 1 Data](https://www.imf.org/-/media/files/publications/weo/2026/april/english/data/ch1data.xlsx). * [Online Annex](https://www.imf.org/-/media/files/publications/weo/2026/april/english/ch1onlineannex.pdf). * [Blog](https://www.imf.org/en/blogs/articles/2026/04/14/war-darkens-global-economic-outlook-and-reshapes-policy-priorities). * [April 2026 Database](https://data.imf.org/en/datasets/IMF.RES:WEO). [](https://www.imf.org/-/media/files/publications/weo/2026/april/english/ch2.pdf). * [Read Chapter 2](https://www.imf.org/-/media/files/publications/weo/2026/april/english/ch2.pdf). * [Chapter 2 Data](https://www.imf.org/-/media/files/publications/weo/2026/april/english/data/ch2data.xlsx). * [Chapters 2 and 3 Blog](https://www.imf.org/en/blogs/articles/2026/04/08/wars-impose-lasting-economic-costs-while-more-defense-spending-means-hard-choices?cid=wp-com-sm26-WEOEA2026001). * [Online Annexes](https://www.imf.org/-/media/files/publications/weo/2026/april/english/ch2onlineannex.pdf). [](https://www.imf.org/-/media/files/publications/weo/2026/april/english/ch3.pdf). * [Read Chapter 3](https://www.imf.org/-/media/files/publications/weo/2026/april/english/ch3.pdf). * [Chapter 3 Data](https://www.imf.org/-/media/files/publications/weo/2026/april/english/data/ch3data.xlsx). * [Chapters 2 and 3 Blog](https://www.imf.org/en/blogs/articles/2026/04/08/wars-impose-lasting-economic-costs-while-more-defense-spending-means-hard-choices?cid=wp-com-sm26-WEOEA2026001). * [online annexes](https://www.imf.org/-/media/files/publications/weo/2026/april/english/ch3onlineannex.pdf). ###### [Statistical Appendix:](https://www.imf.org/-/media/Files/Publications/WEO/2026/April/English/statsappendix.ashx). [Data assumptions, conventions, and classifications](https://www.imf.org/-/media/Files/Publications/WEO/2026/April/English/statsappendix.ashx). ###### [Statistical Appendix A:](https://www.imf.org/-/media/Files/Publications/WEO/2026/April/English/tableA.ashx). [Key Global Economic Indicators](https://www.imf.org/-/media/Files/Publications/WEO/2026/April/English/tableA.ashx). ###### [Statistical Appendix B:](https://www.imf.org/-/media/Files/Publications/WEO/2026/April/English/tableB.ashx). [Supplemental Global Economic Indicators](https://www.imf.org/-/media/Files/Publications/WEO/2026/April/English/tableB.ashx). [](/en/publications/weo). [](/en/publications/gfsr). [](/en/publications/fm). [](https://www.imf.org/en/Publications/REO).