Global Economic Outlook in 2026 and its Implications
By Prof. Nuwagaba Augustus: Bank of Uganda Deputy Governor
A high-angle shot of a leather change purse and some change and a banknote on a wooden surface (Image: Pixels)
The global economy is looking interesting in 2026. Global growth is estimated at 2.8%, which is pretty decent.
The U.S. economy is expected to continue to drive global growth, with forecasts for 2026 GDP growth estimated at 2.6%, supported by tax cuts, easier financial conditions, and a reduced drag from tariffs.
China's GDP is forecast to expand by around 4.5% to 4.8% in 2026. The major driver will be manufacturing and IT equipment, and services.
The Eurozone is expected to grow slowly, with forecasts around 1.3%–1.7%. Germany (the largest economy in Europe) is projecte...