India’s economy is projected to grow 7.2 per cent in 2027, faster than China, as Goldman Sachs expects it to stay the leader among major emerging economies. The projection is above the market consensus of 6.8 per cent. Growth for 2026 is estimated at 7.9 per cent. China, in contrast, is expected to slow to 4.5 per cent in 2027, with exports providing some support despite the real estate crisis and weak domestic consumption.
The global economy is forecast to grow 2.8 per cent in 2027, slightly above the 2.7 per cent estimated for 2026. Lower energy prices and heavy investment in artificial intelligence (AI) are expected to support growth despite tight financial conditions. Jan Hatzius, Chief Economist and Head of Research at Goldman Sachs, said energy costs, technology investment and government fiscal policies are emerging as the main drivers of global growth, and the world economy could record steady, moderate expansion next year.
Developed economies such as the United States, Japan and the United Kingdom are expected to grow faster than market forecasts. South Korea and Taiwan are likely to benefit significantly from strong global demand for AI-related exports. Global AI investment is projected to rise from $1.1 trillion in 2026 to $1.8 trillion in 2027, with hardware spending in the US alone increasing by more than $500 billion. This is expected to add 0.4 percentage points to global GDP growth.
Falling oil prices are also expected to aid economic activity. Brent crude is forecast to ease to $78 a barrel by the end of 2027, with liquefied natural gas (LNG) prices also declining gradually. European economies, however, will continue to feel the impact of higher energy costs for some time.