Global Growth Outlook Holds Steady as Financial Conditions Stay Tight

In Numbers

●     Global GDP growth (2026): ~2.9%, broadly unchanged

●     China growth (2026): ~4.6%, leading major economies

●     US / Eurozone growth (2026): ~1.8% and 1.1% respectively; borrowing conditions remain tight

What Changed

Economic growth expectations were largely maintained, with no significant downgrade to the global outlook. Major economies are still expanding, but at moderate speeds rather than rapid acceleration. Inflation pressures continue to ease, yet interest rates remain relatively high, keeping credit expensive. The macro picture points to stability, but not a strong economic boom.

Why It Matters (Global Oil Market)

Oil demand follows economic activity. A stable global growth outlook supports continued consumption of transport fuels, industrial energy and petrochemical feedstocks. However, tight financial conditions, meaning higher borrowing costs for businesses, can slow investment and industrial expansion, limiting how fast oil demand grows. The result is a demand outlook that is steady, not surging.

Why Africa Should Care

For African oil importers, steady global growth reduces the risk of a sudden drop in fuel availability, but tighter financial conditions can strain currencies and financing costs. For oil producers, continued expansion in major economies, especially China, supports baseline demand for exports. At the same time, higher global borrowing costs may weigh on funding for upstream and midstream projects, making cost efficiency and stable fiscal planning more important.