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BofA Global Research Forecasts Stronger-than-Expected Economic Growth in 2026
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
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[{"type":"text","content":"AI Investment Growth and Global Policy Shifts Poised to Drive Market Returns Despite Volatility","length":95,"tagName":"p","attribs":{}},{"type":"text","content":"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.","length":696,"tagName":"p"},{"type":"image","alt":"(PRNewsfoto/Bank of America Corporation)","displaySize":"","headline":null,"caption":"(PRNewsfoto/Bank of America Corporation)","className":"","disableSlideshowImg":false,"size":{"original":{"width":400,"height":218,"url":"https://media.zenfs.com/en/prnewswire.com/4d6fb45aaf101b6a5768c6209ac29c98"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/vBL7vueTUitsFOJUBxvDrQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTcwNTtoPTM4NDtjZj13ZWJw/https://media.zenfs.com/en/prnewswire.com/4d6fb45aaf101b6a5768c6209ac29c98","width":400,"height":218}},"href":"https://mma.prnewswire.com/media/1612970/Bank_of_America_Corporation_Logo.html","hrefExternal":true,"rel":"nofollow"},{"type":"text","content":""Despite these lingering concerns, our team remains bullish on the economy and AI," said Candace Browning, head of BofA Global Research. "We are optimistic on the two most influential economies, expecting above-consensus GDP growth for the US and China. Furthermore, concerns about an imminent AI bubble are overstated, in our view, and we expect AI investment to continue to grow at a solid pace in 2026."","length":431,"tagName":"p"},{"type":"text","content":"Key macro calls made for the markets and economy in the year ahead are:","length":71,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"More bullish than consensus on 2026 US GDP growthSenior US Economist Aditya Bhave is expecting 4Q/4Q GDP growth of 2.4% in 2026. The...