BIS Annual Economic Report 2026: from resilience to robustness, strengthening the foundations of policyThe BIS annual report: the world economy held up. Next, build strong foundations
On June 28, 2026 the BIS published its Annual Economic Report. Over the past year investment in AI ecosystems helped global growth withstand the blow from major tariff hikes, but geopolitical headwinds and rising fiscal and financial fragilities remain. The BIS calls for stronger foundations: fiscal sustainability, an unambiguous commitment to price stability and congruent prudential policies across the financial system.The BIS, an international organisation where the world’s central banks work together, has published its annual report. Over the past year the world economy held up even with higher tariffs, and investment in AI was a big support. But with public debt and weak spots in finance growing, it urges strengthening the “foundations”, such as stable prices and sound public finances.
- (1) TariffsEffective tariff rates were lower than expected, with trade diversion and firms absorbing costs
- (2) AI investmentCapital expenditure on AI surged and lifted US investment
- (3) Stock pricesAI optimism lifted valuations and kept financial conditions favourable
- ○Applies: Make public finances sustainable over the long run
- ○Applies: Make an unambiguous commitment to stable prices
- ○Applies: Align the rules across the financial system to keep it safe
- ×Does not apply: Higher tariffs stopped world growth