By the numbers:

2.7%: Forecasted average global growth through 2027, a slight improvement from April but below earlier projections.
3.7%: Projected growth for Asia and Australasia, the world's fastest-growing region, led by India.
1.3%: Muted growth expected for Europe, the slowest region in the forecast.
$375 billion: Projected global investment in AI for 2025, a figure that could reach $500 billion by 2026.

The big picture: The report argues that the global landscape is being reshaped by deeper forces than typical economic cycles.

Persistent factors like economic policy uncertainty, sticky inflation, and the rise of protectionism are creating sustained downside pressure.
Kearney notes that trade, technology, and energy are increasingly being used as instruments of geopolitical leverage, intensifying global fragmentation.

What they're saying:

"Volatility and fragmentation are no longer temporary shocks—they are the new baseline," said Erik Peterson, partner and managing director of Kearney's Global Business Policy Council. "Businesses must adapt to a world where competitive advantage depends as much on navigating geopolitical risk and resilience as on innovation and efficiency."
"On such unsteady ground, the companies that invest in resilience, diversify risk, and lead with purpose will define the next era of global growth," noted Terry Toland, principal at Kearney's Global Business Policy Council.

What to watch: The rapid adoption of AI is identified as a major wildcard. While the technology promises annual productivity gains of up to 1.3%, Kearney cautions that these benefits could become concentrated among leading firms and economies, potentially worsening inequality and reshaping the competitive landscape.

SURVEY: Structural Volatility Ahead for Global Economy

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