---
title: "JPMorgan Sees the Global Economy Picking Up — but Sticky Inflation Is the Catch"
description: "JPMorgan expects developed economies to head into the second half of 2026 with more momentum — powered by big-tech AI spending and resilient upper-income consumers — even as it warns that inflation is proving stubborn and a Middle East energy shock is squeezing households."
category: "Markets"
category_url: https://boursel.com/category/markets
author: "Hannah Blackwood"
published: 2026-06-28T16:43:00.000Z
updated: 2026-06-28T16:43:00.000Z
canonical: https://boursel.com/article/jpmorgan-sees-the-global-economy-picking-up-but-sticky-inflation-is-the-catch
tags: ["jpmorgan", "global-economy", "inflation", "outlook", "ai", "energy"]
---
# JPMorgan Sees the Global Economy Picking Up — but Sticky Inflation Is the Catch

JPMorgan expects developed economies to head into the second half of 2026 with more momentum — powered by big-tech AI spending and resilient upper-income consumers — even as it warns that inflation is proving stubborn and a Middle East energy shock is squeezing households.

This is attributed analysis, not investment advice.

JPMorgan's economists are cautiously optimistic about the world economy's back half. In its [2026 outlook](https://www.jpmorgan.com/insights/global-research/outlook/market-outlook), the bank's research arm expects growth across most developed markets to run **at or above potential** this year, with the United States in particular entering the **second half of 2026 with more momentum** after a sluggish start. The catch, the bank says, is that inflation is refusing to come all the way down.

## What's driving the pickup

Two engines stand out in JPMorgan's account. The first is the **AI build-out**: the largest technology companies are pouring money into data centers and chips, and that surge in business investment is a real boost to growth. The second is the **consumer** — specifically higher-income households, who have enjoyed big gains in wealth over recent years and keep spending. For **emerging markets** outside China, JPMorgan sees a "trend-like" pace of around **3.3%**, helped by fading tariff fears, easier monetary policy and the same tech-investment wave.

(For the uninitiated: an economy growing "at potential" is expanding about as fast as it sustainably can without overheating; **emerging markets** are faster-growing, less-developed economies like India, Brazil or Indonesia.)

## The catch: inflation won't quit

The optimism is hedged. JPMorgan flags **sticky inflation** as the prevailing theme — after the pandemic and Russia-Ukraine supply shocks unwound, price growth has hovered around **3%** with little sign of falling further. And a new pressure has arrived: the **Middle East conflict** drove energy prices up, and JPMorgan notes that the spike is "raising inflation and generating a sharp squeeze on household purchasing power." Even as crude itself has eased from its highs, the episode lifted the floor under inflation at an awkward moment.

That matters because inflation governs central banks. Stickier prices mean policymakers keep interest rates **higher for longer** — the US Federal Reserve has held its benchmark in the 3.5%–3.75% range — which weighs on the richly valued growth and tech stocks now leading the market. JPMorgan also points to **tariffs** and a broader fragmentation of global trade as forces that push prices up and complicate the outlook.

## How to read it

This is a "growth, but mind the risks" call, not an all-clear. The bullish case rests on AI investment and resilient consumers; the bearish case is that sticky inflation and the energy shock keep central banks tight and eat into household budgets. Other forecasters strike a more cautious note on the global total — the IMF and World Bank have both trimmed their 2026 growth projections, citing Middle East conflict risks — so JPMorgan's relative optimism on developed-market momentum sits at the firmer end of the range.

For investors, the practical message is about **what's leading and what's at risk**. A world of decent growth but stubborn inflation tends to favor the AI-and-tech complex driving the expansion, while punishing anything sensitive to higher-for-longer rates. The single variable to watch, on JPMorgan's own logic, is inflation: if the energy shock fades and price growth finally drifts lower, the rebound has room to run; if it doesn't, the same momentum the bank is betting on could stall. As always, it's one well-argued view among many — and the bank itself frames it as a balance of promise and pressure, not a sure thing.

## Sources

- [2026 Market Outlook](https://www.jpmorgan.com/insights/global-research/outlook/market-outlook)