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daviscapitalsite.com article

AI Expectations Underpin the Economic Outlook for 2026 | Davis Capital Management

https://daviscapitalsite.com/ai-expectations-underpin-the-economic-outlook-fo…

From surging investment in data centers to shifting labor market dynamics, AI is influencing growth expectations across the U.S. and global economies. Here’s how AI-driven investment, Federal Reserve policy, and global conditions may shape the economic outlook in the year ahead. So far, forecasts for 2026 suggest the new year is being met with a mix of optimism and wariness about how investments in AI could reshape the U.S. and global economies. The Federal Open Market Committee (FOMC), which is the arm of the Federal Reserve responsible for setting U.S. monetary policy, meets eight times per year to review economic data pertaining to inflation, employment, and credit conditions before voting on whether to adjust the benchmark federal funds rate. It’s been reported that just four tech giants — Alphabet (Google), Amazon, Meta, and Microsoft — had capital expenditures of $337.8 billion in 2025, primarily to build out AI infrastructure.9 By one estimate, business investment in data centers and related AI infrastructure could contribute as much as 0.5% to U.S. economic growth in 2025 and 2026.10.

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goldmansachs.com article

Forecasts for the World's Biggest Economies in 2026

https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-bigge…

* [What We Do](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [Insights](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [Our Firm](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [Careers](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [What We Do](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [Insights](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [Our Firm](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [Careers](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [What We Do](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [Insights](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [Our Firm](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [Careers](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [What We Do](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [Insights](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [Our Firm](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). * [Careers](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). [Share](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026#). ![Image 1: Cargo ship](https://www.goldmansachs.com/images/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026/HeoALT.jpg). ![Image 2: Cargo ship](https://www.goldmansachs.com/images/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026/HeoALT.jpg). Goldman Sachs Research expects “sturdy” global economic growth in 2026, with some of the world’s biggest economies getting a boost from higher fiscal spending, declining policy rates, and a reduced tariff impact. Overall, [Goldman Sachs Research](https://www.goldmansachs.com/insights/goldman-sachs-research) forecasts global real (inflation-adjusted) GDP to increase 2.9% in 2026—higher than the consensus estimate of 2.7%. Scroll down to see Goldman Sachs Research’s 2026 forecasts for some of the world’s [biggest economies](https://www.goldmansachs.com/insights/macroeconomics). In Japan, Goldman Sachs Research expects steady growth to continue, with 0.6% real GDP growth this year. * [Life at GS](https://www.goldmansachs.com/careers/life-at-goldman-sachs "Life at GS Link"). [Your Privacy Choices](https://www.goldmansachs.com/insights/articles/forecasts-for-the-worlds-biggest-economies-in-2026).

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upcommons.upc.edu research

[PDF] “Nowcasting and forecasting GDP growth with machine-learning ...

https://upcommons.upc.edu/bitstreams/76b1b241-384e-46ea-8170-e7c575cbb987/dow…

To assess the performance of the proposed approach, we have designed two out-of-sample experiments: a nowcasting exercise in which we recursively generate estimates of GDP at the end of each quarter using the latest survey data available, and an iterative forecasting exercise for different forecast horizons We found that forecasts generated with the sentiment indicators outperform those obtained with time series models. The obtained expressions differ from the confidence indicators constructed by the EC in that: (a) they are based on information coming from all the available variables of each survey, (b) they select expectations with the highest forecasting power and their optimal lag structure, (c) they capture the existing non-linear relationships between survey expectations, and (d) they generate direct estimates of economic growth. This forecasting exercise addresses the question about the information content of business and consumer survey expectations, and whether more sophisticated aggregation schemes based on machine learning could provide composite indicators that can better track economic activity.

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