What should advisors and investors expect for the global economy through 2026?
Given the many macroeconomic factors at play, figuring out the best path forward is not straightforward. As such, it can pay off to lean on experts’ perspectives to identify the best opportunities.
Recently, the team at BNY Investments released its 2026 Outlook. In its outlook, the BNY Investments team discussed the global economy and how it may fare through the new year.
For the United States, the BNY Investments team anticipated that economic headwinds were “likely to lessen,” driven by lower tariff uncertainty, Federal Reserve policy, and favorable fiscal policy. The outlook also anticipated that U.S. growth will be driven by consumer spending, powered by disposable income and tax refunds.
In Europe, the BNY Investments outlook anticipated “only gradual growth” for the region in 2026. This is due to a multitude of factors, including capacity constraints in construction and defense procurement, as well as political uncertainties in France. However, there are still some spots of positivity, such as Germany.
Meanwhile, China has presented an interesting case. The BNY Investments outlook noted that diversified exports and AI advancements helped the country amplify its performance for 2025, but that growth is waning. That being said, the outlook anticipated that further fiscal stimulus could come for the country in the first half of 2026, which could push its stocks into more favorable positions.
Looking at the big picture, the BNY Investments outlook asserted that the global economy “looks primed for a steady advance, but investors should not forget that, when the picture is multi-dimensional, subtle changes can alter the view.” Actively managed ETFs can offer more flexibility for navigating these subtle changes, regardless of where they occur on the globe.
Two Funds for Tackling Tomorrow's Economies
Those looking to build up their U.S.-based exposure may want to look at a fund like the BNY Concentrated Growth ETF (BKCG ). True to its name, BKCG takes a concentrated approach to growth investing by focusing on only about 25-35 companies.
When selecting companies to include in its portfolio, BKCG’s team first looks for sectors it anticipates will expand over the next three to five years. From there, the fund employs fundamental analysis to identify companies with dominant positions in their respective sectors.
Meanwhile, the BNY Concentrated International ETF (BKCI ) could help advisors and investors who want an active take on international investing. Much like BKCG, BKCI offers a concentrated portfolio of stocks, albeit with a spin towards international companies.
To choose stocks to potentially invest in, BKCI takes a fundamental, bottom-up approach. The fund does not particularly focus on geographic, sector, or industry allocations due to the fund management team’s focus on individual fundamentals.
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