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Economic Buzz: RBI says outlook for global economy in 2026 points to a moderate expansion at 3.1%
30-May-2026 13:00
Reserve Bank of India stated in its latest Annual Report that the outlook for the global economy in 2026 points to a moderate expansion at 3.1 per cent, below its long-term average (2000-19) of 3.7 per cent. The world trade (goods and services combined) volume growth, projected at 2.8 per cent2 in 2026, remains highly sensitive to shifts in the geopolitical landscape and energy prices-driven inflation risks. The evolving growth-inflation dynamics, particularly the resurgence of supply shock-driven inflation risks in the aftermath of the West Asia conflict, may require central banks to carefully balance the objective of containing inflation against the need to minimise adverse spillovers on growth, warranting cautious calibration of monetary policy paths.

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