The ACCA 2026 Global Economic Outlook highlights India’s economic resilience despite a sharp rise in US import tariffs, with the Indian economy expanding by 8.2% year-on-year in the July-September quarter.
According to the latest outlook by the Association of Chartered Certified Accountants (ACCA), robust consumer spending has played a central role in supporting growth, positioning India ahead of many global peers in an increasingly volatile economic environment.
In contrast, global economic growth is projected to remain steady but modest, supported by easing monetary policy, targeted fiscal stimulus in key economies, and continued momentum from the artificial intelligence (AI) boom.
However, ACCA cautions that downside risks remain elevated due to geopolitical tensions, trade disruptions, and financial market uncertainty.
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ACCA 2026 Global Economic Outlook: Key Drivers Supporting India’s Growth
The ACCA 2026 Global Economic Outlook notes that India is expected to continue benefiting from strong consumer spending amid low inflation, goods and services tax (GST) reductions, and an easing monetary policy stance.
Government-led infrastructure investment and resilient service sector growth – partly supported by exports – are also contributing to economic momentum.
Recent policy reforms, including changes to labour regulations and bankruptcy laws, are expected to enhance India’s medium- to long-term economic performance.
The report adds that any potential trade agreement with the United States and sustained low global oil prices could further support growth, while domestic food price volatility remains a key risk to monitor.
India Likely to Remain Fastest-Growing Major Economy
Commenting on the ACCA 2026 Global Economic Outlook, Sajid Khan, Director – India at ACCA, said the Indian economy’s performance amid higher US import tariffs is highly encouraging.
He noted that India is likely to remain the world’s fastest-growing major economy in 2026, with recent reforms potentially strengthening its long-term growth outlook.
Global Growth Outlook Remains Steady but Fragile
The ACCA 2026 Global Economic Outlook finds that global growth in 2025 was stronger than initially expected despite major trade disruptions and policy uncertainty. This resilience is projected to carry into 2026, with global GDP growth expected at around 3%, broadly in line with the previous year.
However, risks are skewed to the downside. Former IMF chief economist Ken Rogoff, interviewed for the report, described the global economy as “solid but not exciting,” warning that uncertainty is not fully priced into financial markets.
He also flagged the risk of a significant stock market correction over the next three years, even as markets may continue to rise in the near term.
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Policy Uncertainty and Trade Tensions Remain Key Risks
According to Jonathan Ashworth, Chief Economist at ACCA and author of the report, the global economy is expected to maintain steady expansion in 2026, supported by looser monetary policy, fiscal easing, and the ongoing AI boom.
The United States is projected to be the fastest-growing G7 economy, driven by policy efforts to boost growth ahead of mid-term elections.
Despite this, Ashworth cautioned that the global backdrop remains fragile due to heightened geopolitical uncertainty, risks of renewed trade tensions, and concerns surrounding the independence of the US Federal Reserve.
Three Key Themes Shaping the Global Outlook
The ACCA 2026 Global Economic Outlook identifies three critical themes likely to shape the global economy:
- Artificial Intelligence (AI): Productivity gains from AI investment could ease fears of a speculative bubble, while doubts over its impact may heighten correction risks.
- Advanced Economy Bond Markets: Rising government bond yields could strain economic growth and increase debt-servicing costs amid fiscal sustainability concerns.
- Global Trade Dynamics: The ripple effects of higher US tariffs and the risk of renewed trade tensions remain key areas to watch.
Business leaders contributing to the report also highlighted AI, geopolitics, trade, the green transition, and cybersecurity as defining issues for 2026.
Strategic Insights for Finance Leaders
Ashworth emphasised that in a volatile and rapidly changing world, understanding the interplay between economic, geopolitical, political, and technological forces will be critical for businesses and policymakers.
The ACCA 2026 Global Economic Outlook offers in-depth analysis and strategic insights to help finance leaders navigate an uncertain global environment.
