2026 Midyear Economic Outlook-Adapting to Change and Building Resilient Organizations

 It is helpful to review a variety of economic reports and forecasts to better understand the opportunities and challenges facing businesses. This report highlights several key factors shaping the global economy, including geopolitical uncertainty, higher energy prices, and the growing influence of artificial intelligence. It also emphasizes the importance of building organizational resilience through strategies such as diversifying supply chains, strengthening portfolio management, and remaining adaptable in a rapidly changing environment.

Ultimately, adaptation is the name of the game. Businesses that can effectively adjust to changing market conditions are far more likely to succeed over the long term. How an organization is structured, how it gathers and analyzes information, how decisions are made, and even the culture it fosters all influence its ability to respond to economic shifts. As you read the report, consider not only the challenges businesses may face, but also the characteristics that enable some organizations to navigate uncertainty, manage risk, and capitalize on emerging opportunities.

Global Economic Outlook: Risk and Opportunity in a Supply Shock World

• The report projects a slower, but not recessionary, global economy as geopolitical tensions, tariffs, and supply-side disruptions reduce growth while increasing uncertainty for businesses and policymakers.
• Higher energy prices, persistent inflation, trade fragmentation, and demographic pressures are creating structural challenges that are reshaping global supply chains and increasing the cost of doing business.
• Artificial intelligence, digital transformation, and strategic business investment continue to provide important opportunities for productivity gains and long-term economic growth despite near-term headwinds.
• Organizations are encouraged to strengthen operational resilience through cost discipline, portfolio management, supply chain diversification, and strategic agility to better navigate ongoing economic volatility.
• The report concludes that businesses capable of adapting to a more fragmented and uncertain global economy will be better positioned for sustainable growth, competitive advantage, and long-term value creation.

Daco, G., Rozkrut, M., Stefański, M., & Boussour, L. (2026, June 17). Global economic outlook: Risk and opportunity in a supply shock world. EY-Parthenon. https://www.ey.com/en_us/insights/strategy/global-economic-outlook