Our investment Outlook 2026 Positioning for a global equilibrium shift

The global economy is shifting gear. For investors, 2026 does not mark a return to normal but instead, the need to adapt to navigate a new set of powerful themes.

Key themes shaping 2026:

While energy remains a long-term investment story, three main investment themes are moving to the forefront in 2026: water scarcity, AI infrastructure and digital assets
Standard business-cycle indicators are no longer reliable as outcomes for growth and markets now hinge on fiscal policy, geopolitics and technology
We are entering a new era of globalisation, but the world remains deeply interconnected

Macroeconomic outlook At a glance

2026 is anticipated to be a year defined by change and momentum. Our outlook for the year is optimistic, shaped by the trends we believe will make the biggest impact.

Our key themes to watch in 2026 are as follows:

Nationalistic industrial policies and renewed fiscal spending should drive a new capex cycle, benefitting diverse industries.

Outside the UK, advanced economies look set to regain momentum, as trade uncertainty recedes and lower interest rates feed through.

Labour markets remain tight, encouraging investment in technology and AI to boost productivity.

Inflation is mostly settled, although the US may see continued pressures as tariff effects and policy changes filter through.

Across the region, strong domestic demand and earlier reforms underpin a healthy outlook.

Explore our perspectives on equities, currencies, gold and other asset classes in this year’s Outlook.

Read our Outlook 2026

Looking ahead to 2026, the GBP direction will be shaped by fiscal policy, interest rate developments, and broader global market developments such as geopolitics and cross-border capital flows.

Sanjay Rijhsinghani Partner, Chief Investment Officer | Management Board

Insights from LGT Global Head Investment Solutions Why we are in a phase of equilibrium disruption

Higher structural inflation, elevated debt and tighter capital costs are reshaping the landscape. In this interview, Mika Kastenholz, LGT Global Head Investment Solutions, shares his insights on what investors should look out for this year.

To the interview

Key trends shaping markets in 2026 On water, cryptocurrencies and AI

Discover the main investment themes to watch out for in 2026.

Will cryptocurrencies ‘come of age’ and become an everyday store of wealth, like traditional bonds, equities and gold?

With data centres popping up everywhere and AI evolving rapidly, the future looks bright for both those companies enabling AI today and those integrating the technology in the future.

Safeguarding water resources is essential not only for life, but for economic security, societal well-being, and ecological stability. Industry and governments are responding to growing water insecurity with innovative solutions.

Investing in 2026: Regions

Oxford Circus area, with busy roads, classic buildings, and red buses.

Trade friction and an extended government shutdown have skewed recent economic data. But next year, as tariff turbulence subsides, investment broadens and monetary policy eases, real GDP growth could accelerate, signalling the start of a new business cycle.

After several years battling headwinds in the form of low growth and inflation, amplified this year by US trade tariffs and a strengthening euro, the Eurozone enters 2026 with more stable economic prospects, thanks to a resilient labour market, lower interest rates and increased fiscal spending.

Rapid adoption of new technologies sees China economically leapfrogging its competitors worldwide, while US tariffs have created headwinds for its much-lauded integrated supply chain.

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Our investment Outlook 2026 Positioning for a global equilibrium shift

Outlook 2026

Macroeconomic outlook At a glance

A new wave of investment

Accelerated growth

Technology and AI breakthroughs

Stable inflation

Asia robust

Asset classes

Insights from LGT Global Head Investment Solutions Why we are in a phase of equilibrium disruption

Key trends shaping markets in 2026 On water, cryptocurrencies and AI

Have digital assets gone mainstream?

The AI barbell: short-term enablers vs long-term adopters

Water: an essential resource under threat

Investing in 2026: Regions

UK at a crossroads: balancing economic headwinds and political uncertainty in 2026

Is the US economy at a pivot point?

Europe finds its footing

China: a tale of two realities

Any questions? We are here to help

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