New Delhi [India], November 15 (ANI): The global economy is expected to register steady growth in 2027, supported by declining energy prices and sustained investments in artificial intelligence (AI), although geopolitical tensions, fiscal pressures and uncertainty over technology spending could pose downside risks, according to a research report by Goldman Sachs.

Global gross domestic product (GDP) is projected to grow 2.8% in 2027, compared with an estimated 2.7% in 2026, said Jan Hatzius, Chief Economist and Head of Goldman Sachs Research. The United States, Japan and the United Kingdom are expected to outperform consensus growth estimates, while South Korea and Taiwan are projected to benefit from continued strength in AI-related exports.

'We expect another year of solid but unremarkable GDP growth in 2027, but several of the impulses that shaped global growth in 2026 will look different,' Hatzius said.

A key driver of the improved outlook is the expected moderation in energy prices. Goldman Sachs' commodity strategists expect Brent crude prices to decline to USD 78 per barrel by the end of 2027, as Middle East supply conditions normalise. Lower energy prices are expected to turn from an economic headwind into a modest support for global growth.

AI investments are also expected to remain an important contributor. The report projects global nominal AI investment to increase to USD 1.8 trillion in 2027 from USD 1.1 trillion in 2026, driven largely by higher hardware spending in the United States.

Goldman Sachs estimates that AI investments will contribute 0.4 percentage points to global GDP growth in 2027, with the impact on US economic growth estimated at 0.6 percentage points.

'Even with the expected slowdown, the impact on GDP growth will be sizable,' Hatzius said.

Among major economies, China is forecast to grow 4.5% in 2027, compared with the consensus estimate of 4.4%. However, weak domestic consumption and continued weakness in the property sector are expected to constrain domestic demand.

The report cautioned that global growth risks remain tilted to the downside, particularly from renewed escalation in Iran, widening fiscal deficits and lower-than-expected AI capital expenditure.

Inflation is expected to moderate as energy prices decline, potentially creating room for central banks to shift towards monetary policy easing later in 2027. (ANI)