Peterson Institute for International Economics

Global growth remains solid in a challenging environment

Global growth remains solid in a challenging environment

The US and global economy are projected to continue expanding at a solid pace next year as the artificial intelligence (AI) boom helps cushion the effects of increased energy prices, inflation, and interest rates. That’s according to an analysis presented by Karen Dynan at the Peterson Institute for International Economics Fall 2026 Global Economic Prospects event.

MP Materials, a rare-earth mine in California, is part of the supply chains targeted by the Trump administration’s use of warrants and federal ownership rights to shape strategic industries. ZUMA

Press via Reuters/David Becker

Photo Credit: Press via Reuters/David Becker

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Costfoto/via Reuters

Photo Credit: Costfoto/via Reuters

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Photo Credit: REUTERS/Valentyn Ogirenko/File Photo

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Photo Credit: REUTERS/Stringer

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What's New

MP Materials, a rare-earth mine in California, is part of the supply chains targeted by the Trump administration’s use of warrants and federal ownership rights to shape strategic industries. ZUMA

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Gary Clyde Hufbauer (PIIE) and Katelyn Hetrick (PIIE)

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An AI icon is displayed at a technology startups and innovation fair in Paris, France. June 2026.

Global growth remains solid in a challenging environment

Karen Dynan (PIIE)

October 6, 2026

Sale signs adorn residential buildings under construction in Huizhou, Guangdong province, China. October 2024.

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Tianlei Huang (PIIE)

October 4, 2026

via East Asia Forum

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October 2, 2026

PIIE Charts

Global GDP expansion to hold firm in 2027 as AI boom continues, high energy prices retreat

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State control of the US economy, or socialism, expanded sharply in 2025 under a Republican White House and Congress

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Global growth remains solid in a challenging environment

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October 6, 2026

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Resources

Trump's tariff revenue tracker: How much is the US collecting? Which imports are hit?

PIIE Chart

Title
Trump's tariff revenue tracker: How much is the US collecting? Which imports are hit?

US-China Trade War Tariffs: An Up-to-Date Chart

PIIE Chart

Title
US-China Trade War Tariffs: An Up-to-Date Chart

Trump's trade war timeline 2.0: An up-to-date guide (featured)

RealTime Economics

Title
Trump's trade war timeline 2.0: An up-to-date guide

Pixel-Shot/Adobe Stock/stock.adobe.com

Microsite

Title
The future of the USMCA

What Is Globalization?

Microsite

Title
What Is Globalization?

Globalization has helped raise incomes almost everywhere since the 1980s

PIIE Chart

Title
Globalization has helped raise incomes almost everywhere since the 1980s