Goldman Sachs expects India to outpace China in 2027, with its economy expected to grow 7.2%, well ahead of China's projected 4.5%.
This marks a major shift, as India keeps gaining ground while China faces ongoing real estate troubles.
Global GDP growth expected 2.8% 2027
The world economy is on track for a modest boost too, with global GDP growth expected at 2.8% in 2027.
Cheaper energy (with oil prices likely dropping to $78 per barrel) and a big jump in AI investments, from $1.1 trillion in 2026 to $1.8 trillion by 2027, are both set to help things along.
Geopolitical tensions, budget gaps threaten growth
Despite the good news, there are some clouds on the horizon: geopolitical tensions and government budget gaps could slow things down.
Some countries might need tighter monetary policy, but falling energy prices could ease inflation and open the door for interest rate cuts.