The global economy, shaken by U.S. President Donald Trump’s Liberation Day tariffs, slowed sharply in 2025 but avoided a full blown recession. Financial markets were unsettled and growth momentum weakened, yet economic activity proved more resilient than initially feared.
According to The Economist’s “The World in Numbers 2026,” global growth is expected to reach 2.4% next year, shaped by ongoing trade disputes, geopolitical tensions and deep structural shifts. While the Atlantic economies are losing momentum, Asia and Africa are emerging as the main engines of global expansion.
Growth in the U.S. and Europe is projected to remain muted, pressured by policy uncertainty, high debt levels and tight financial conditions. In contrast, export driven Asian economies are expected to outperform, with India leading global growth at over 6%. Several African economies, including Ethiopia and Libya, are also expected to record some of the world’s fastest growth rates.
Within Europe, Turkey stands out as the region’s fastest growing economy, with output projected to expand by 3.8% in 2026. Strong domestic demand, public backed investment and a resilient services sector are expected to support growth, even as weak demand, budget pressures and geopolitical uncertainty continue to weigh on much of the continent.
