BofA Global Research Forecasts Stronger-than-Expected Economic Growth in 2026

AI Investment Growth and Global Policy Shifts Poised to Drive Market Returns Despite Volatility

NEW YORK, Dec. 2, 2025 /PRNewswire/ -- 2025 has shown to be a strong year in markets—both in the US and abroad—leaving investors wondering how much is left in this rally. The big themes of the past year—uncertain fiscal policy, the AI surge, China's overcapacity, record fiscal deficits, and excess liquidity—are evolving rather than disappearing. As the world begins to better understand how artificial intelligence impacts economic growth, inflation, and corporate investment, BofA Global Research economists and strategists are bracing for more volatility in 2026. The AI-driven equity boom remains a defining feature of the "K-shaped" economy, adding another layer of risk.

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