AI, energy and defense driving capital spending boom | Mid-year Outlook 2026 Part 1

We may be witnessing one of the largest global capital spending cycles in decades, driven by AI, energy transition and defense modernization. Despite geopolitical tensions, energy price shocks and persistent inflation, Zurich’s Investment Management team remain constructive on the global outlook for the second half of 2026. Key takeaways from our Mid-Year Outlook podcast: Global growth remains broadly trend-like and resilient The AI investment boom continues to accelerate, supported by strong credit markets and unprecedented capital expenditure Fiscal spending, defense investment and renewable energy projects are providing additional growth support The US economy continues to outperform expectations, backed by solid consumer spending and AI-driven investment Europe faces headwinds, but Spain and Southern Europe are proving surprisingly resilient China remains a global stabilizer, balancing export strength with longer-term investments in technology and innovation Central banks may stay more hawkish than expected, but a prolonged tightening cycle remains unlikely #MidYearOutlook #GlobalEconomy #EconomicOutlook