Goldman Sachs forecasts global growth of 2.8% in 2027, compared with an estimated 2.7% in 2026, with projections of 2.4% for the United States, 4.5% for China and 0.9% for the euro area. The bank expects Brent crude to fall to $78 per barrel and artificial intelligence investment to rise from $1.1 trillion in 2026 to $1.8 trillion in 2027, adding approximately 0.4 percentage points to GDP growth. It also anticipates possible Federal Reserve rate hikes in December 2026 and March 2027, alongside a 14% rise in the S&P 500 to 8,700 points, even as earnings growth slows from 36% to 11%. Its three main downside risks are an escalation involving Iran, widening fiscal deficits and an earlier-than-expected peak in AI investment. Nvidia’s potential 14% decline following the resignation of CEO Jensen Huang highlights the vulnerability of the AI trade.
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