Global growth outlook eases slightly as inflation and trade tensions linger

S&P Global’s October 2025 report projected a mildly softer world-economy trajectory, trimming the 2026 GDP forecast to 2.6 percent from 2.7 percent. Economists said the revision reflects persistent U.S.–China trade frictions and tighter fiscal environments in advanced markets. Still, falling crude-oil prices and accommodative monetary policies are expected to cushion near-term weakness. Growth momentum across Europe and Asia remains positive but uneven. Analysts cautioned that geopolitical uncertainty and election-year volatility may constrain investment sentiment, though easing inflation pressures could sustain consumer demand through the first half of 2026.