Goldman Sachs has released its forecast for the global economy in 2026, predicting a slowdown in core inflation and a continued decline in interest rates in developed countries.

The bank expects U.S. interest rates to fall by 50 basis points, coinciding with an acceleration of U.S. economic growth to 2.6%.

For the Eurozone, the bank forecasts economic growth of 1.3% and expects China’s economy to expand by 4.8%, supported by sustained high indicators and growth in China’s manufacturing sector in the same year.