Morgan Stanley’s global economic forecast for 2026 anticipates a period of moderated expansion and persistent inflationary pressures. The outlook suggests that while economic activity will continue, the pace is expected to be more restrained compared to previous years. Central banks may face challenges in balancing growth with price stability, particularly as supply-side constraints and geopolitical factors continue to influence markets. Although inflation is projected to remain above historical averages, it is expected to stabilize gradually if monetary policies remain disciplined. The report highlights risks related to fiscal imbalances and shifting trade dynamics, urging policymakers to prepare for a more complex macroeconomic environment in the coming years.
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2026 Global Outlook: Slower Growth and Inflation Morgan Stanley