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A global economic recovery built on shaky foundations

The US’ economy looks healthy, but not all other economies are doing as well

Summarise
    • A Prada store in Milan, Italy. The eurozone is beset by economic and political malaise. High energy costs and surging Chinese exports have crimped manufacturing growth in its core economies.
    • A Prada store in Milan, Italy. The eurozone is beset by economic and political malaise. High energy costs and surging Chinese exports have crimped manufacturing growth in its core economies. PHOTO: REUTERS
    Published Wed, Oct 14, 2026 · 12:00 PM

    [ITHACA] Despite heightened policy and geopolitical volatility, global growth has stabilised, with both advanced and emerging market economies showing positive momentum.

    The October 2026 update of a joint economic project between the Brookings Institution and Financial Times reveals a world economy that, after a series of setbacks, looks set for a year of solid growth.

    The Brookings-FT TIGER (Tracking Indexes for the Global Economic Recovery) study said, however, that potentially explosive issues are lurking in the background. These include trade and geopolitical tensions that show no signs of easing, persistent inflationary pressures, and rising public debt levels in advanced economies. The latter two issues are already roiling France and threaten to do the same elsewhere.