Archive · 2 Jan 2026
Global Economy Rebounds Despite Trade and AI Fears
The world economy is doing better than expected, even with all the worries about trade wars and artificial intelligence.
A report by Goldman Sachs shows that after a slowdown earlier in the year, the global economy is now growing almost as fast as it was before the trade wars started.
Another report by JPMorgan shows that business activity is at its highest in 14 months.
In the U.S., the economy grew by 3.9% in the third quarter of 2025, which is really good, even though it might slow down a bit in the last quarter.
Most countries are doing well, with only Finland in a recession.
Economists have also raised their predictions for global growth this year from 2.2% to 2.6%.
Global economy growing nearly as fast as pre-trade war levels according to Goldman Sachs.
JPMorgan's global composite PMI hit a 14-month high in August 2025.
U.S. GDP grew by 3.9% annualized in Q3 2025, per Federal Reserve Bank of Atlanta.
Only Finland is in recession in 2025, down from 8 countries in early 2023.
Global growth forecast revised from 2.2% to 2.6% for 2025.
- Who
- Global economy, OECD countries, economists
- What
- Economic recovery and growth
- When
- Third quarter of 2025, August 2025
- Where
- Global, with specific mention of the U.S. and Finland
- Why
- Despite trade war and AI fears, economic indicators show strong performance
- Goldman Sachs Indicator
- Global economy growing nearly as fast as pre-trade war levels
- JPMorgan Global Composite PMI
- Hit 14-month high in August 2025
- Federal Reserve Bank of Atlanta
- U.S. GDP grew 3.9% annualized in Q3 2025
- OECD Recession Count
- Only Finland in recession in 2025, down from 8 in early 2023
- Global Growth Forecast
- Revised from 2.2% to 2.6% in 2025