Goldman Sachs now expects the world economy to grow a bit faster, 2.8% by 2027, up from 2.7% in 2026.
The bank credits this upgrade mostly to big investments in artificial intelligence (AI) and improving energy supplies, which should help balance out tougher financial conditions and less government spending.
Goldman Sachs forecasts $1.8T AI spending
Goldman predicts that AI could add about 0.4% point to global growth, with worldwide spending on AI technology hitting $1.8 trillion, driven mainly by stronger demand for hardware in the United States.
On top of that, energy costs are expected to drop, with oil prices possibly falling to $78 a barrel by late 2027.
That's good news for countries that import energy, though Europe might still face higher bills than others.
Goldman Sachs warns geopolitics, AI risks
The report does warn about some risks: rising geopolitical tensions or not investing enough in AI could hold back growth.
For now, though, the outlook is cautiously optimistic, with both technology and cheaper energy leading the way.