Goldman Sachs' 2027 forecast! New scenario for interest rates and growth

Goldman Sachs issued its 2027 global economic outlook, projecting US growth above 2.5% and growth above 1% for Europe and Japan, while forecasting further interest rate hikes from both the Federal Reserve and the European Central Bank. The bank cautioned that corporate profit growth may slow, and identified artificial intelligence and defense as sectors likely to stand out for investors. The call matters because it signals that major central banks may not be done tightening even as growth holds up, shaping expectations for rates, margins and sector allocation. Investors will watch upcoming Fed and ECB communications and corporate earnings for confirmation of the growth and profit trajectory Goldman describes.