Kearney - Global Economic Outlook 2023-2027

The Lingering Aftershocks Global Economic Outlook 2023-2027 report presents four competing visions of the economic future through 2027, providing business leaders with insights into a range of plausible futures rather than specific predictions. The global economy is experiencing fundamental shifts, influenced by events like the pandemic and Russia-Ukraine conflict, as well as efforts to bolster national self-sufficiency in major economies. The prospect of trade friction and the potential for a rewiring of the economic order are factors that could shape the economic future. The report also highlights challenges for technology advancement and economic growth, such as more rigorous regulation of data, including the European Union's "a Europe fit for the digital age" strategy, and data localization efforts in many countries. Central banks' actions to combat inflation by tightening monetary policies and raising interest rates have created uncertainty around the future impact of these policies on the global economy. Businesses should prepare for further changes in the global political and economic order, including potential fragmentation, and consider localization efforts to mitigate external risks. The report also notes that geopolitical turbulence, including tensions in US-China relations and regional conflicts in parts of the Middle East and Africa, will likely shape the global operating environment through 2027. Finally, the report suggests that the global economy may face limited growth through 2030 due to the series of shocks in recent years and a reversal of the many forces that have driven economic activity since 1990.