Global economy faces uncertainty in 2026

The World Economic Forum's latest survey shows that more than half of the chief economists think the global economy will slow down in 2026.

Only a small number expect stronger growth.

The main worries are high debt, expensive assets, and ongoing conflicts between countries.

Some parts of the economy, like AI-related stocks in the U.S., are doing well, but others are at risk.

Governments and businesses have a lot of debt, which makes it hard to spend money on important things.

Trade is also changing, with countries making new agreements to protect their interests.

Artificial intelligence is expected to help the economy grow, but not everyone will benefit equally.

Some people are buying gold to protect their money from uncertainty.

Governments are spending a lot of money to boost economic growth and jobs, but this could be risky with low unemployment and higher interest rates.

In Japan, the yields on long-term government debt surged to record highs after a plan to increase spending and cut consumption tax was unveiled.

Economists warn of vulnerabilities in advanced economies, including weak private-sector demand and poor productivity growth.

In the U.S. and Germany, fiscal stimulus is set to boost economic growth by around 1 percentage point this year.

China is set to run a nearly 9% of GDP aggregate budget deficit for the second year in a row.

The heavy spending represents a strategic shift from austerity to addressing growing challenges, such as AI, tariffs, and rearmament.

However, higher inflation and interest rates could make government debt unsustainable in the long term.