Analysts at BNP Paribas anticipate that US economic growth will hit 2.9% in 2026, driven by increased investment

BNP Paribas Forecasts Robust US Economic Expansion in 2026

According to BNP Paribas analysts, the United States is projected to achieve a 2.9% growth rate in 2026, outpacing both its potential growth and the 2.3% increase forecasted for 2025. This optimistic outlook is largely fueled by increased investments in artificial intelligence and higher spending among affluent consumers.

Inflation is expected to reach 2.7% in 2026, remaining above the Federal Reserve's target, with tariffs playing a significant role in this upward pressure. This elevated inflation is likely to persist through at least the end of 2027.

In response, the Federal Open Market Committee has enacted three interest rate reductions in 2025, totaling a 75 basis point decrease. The federal funds rate is anticipated to stay steady within the 3.5% to 3.75% range for the foreseeable future.