EBRD raises growth outlook for emerging market economies
Emerging markets grew 3.4 percent as trade rerouted around U.S. tariffs. The EBRD raised its 2026 growth forecast to 3.6 percent amid strong AI-related exports.
The European Bank for Reconstruction and Development (EBRD) reports that trade tariffs from the United States have rerouted global commerce without causing the severe economic downturn initially feared in developing regions. Economic growth across the 40 nations monitored by the institution reached 3.4%, surpassing previous forecasts. Chief economist Beata Javorcik noted that the outlook for the coming years has improved due to easing inflation and significant infrastructure investment. The bank has adjusted its growth projections upward to 3.6% for the current year and 3.7% for 2027.
"The picture is somewhat more optimistic than in the autumn...and we expect this year and next year to be even better than last year."
