World Growth Holds Up, but Real Interest Rates Rise - Fitch Ratings

Fitch expects global growth to remain resilient despite higher energy prices and rising real interest rates, raising its 2026 GDP growth forecast by 0.2 percentage points to 2.6%. That would be only slightly below 2025 growth and broadly in line with the long-run trend. US growth forecasts for both 2026 and 2027 were raised by 0.2 percentage points to 2.1%, supported by stronger-than-expected consumption and continued AI-related capital spending. Eurozone activity has also held up better than expected, with forecasts nudged higher and Germany returning to growth, expanding 1% year-on-year in Q2 after three years of stagnation.