Moody's: Global Growth to Stabilize in 2027; Oil Prices to Begin Falling Midyear

According to Jin10, Moody's Ratings said in its latest macro outlook that global economic growth is expected to slow from 2.8% in 2025 to 2.6% in 2026, then stabilize near that rate in 2027 and 2028. Advanced economies are expected to grow about 1.7% next year, while emerging-market growth may slow from 4.5% in 2025 to about 4% in 2027. Moody's said overall inflation would ease as oil prices peak and hover near the upper end of a range of $90 to $110 per barrel, before beginning to decline in mid-2027. Central banks may opt for limited rate increases rather than begin a sustained tightening cycle. Capital spending by hyperscale cloud providers is expected to remain high at about $1 trillion next year, but its support for GDP will weaken as spending growth slows from about 100% this year to 25% next year.