Expected market environment for the remainder of 2026
Despite ongoing geopolitical and trade policy uncertainty, the economic environment is expected to stabilize gradually in the second half of 2026. Growth prospects continue to vary by region. The US economy is expected to remain robust, with GDP growth of 2.3%, while economic activity in Europe is likely to remain subdued, with growth of 0.9% in the euro zone and 0.7% in Germany. China’s economy is expected to grow by 4.6%, representing weaker but still positive growth momentum than in previous years. Overall, the global economy is expected to grow by 3.0% in 2026.
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|
|
|
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Forecast for GDP Growth (Real)
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T015
|
|
in %
|
20252
|
2026e
|
2027e
|
|
World1
|
+3.5
|
+3.0
|
+3.4
|
|
USA1, 3
|
+2.1
|
+2.3
|
+2.2
|
|
China1, 4
|
+5.0
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+4.6
|
+4.1
|
|
Euro zone1, 5
|
+1.4
|
+0.9
|
+1.2
|
|
Germany1, 6
|
+0.2
|
+0.7
|
+1.0
|
|
1_IWF WEO Update, July 2026.
2_Partly revised data.
3_USDC/BEA for 2025.
4_National Bureau of Statistics (NBS) for 2025.
5_Eurostat/ECB for 2025.
6_Destatis for 2025.
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Expected market environment for Industry Applications
Stable demand is expected in the end markets relevant to Industry Applications. Investments in digitalization, data centers, energy infrastructure, and other industrial growth areas are expected to support demand. At the same time, willingness to invest in traditional industrial sectors remains subdued amid geopolitical uncertainty and a weak economic environment. Global industrial production is expected to develop moderately over the remainder of the year. Despite a recovery in order intake in the German mechanical engineering sector in the first six months of 2026, production is expected to remain broadly flat for the year as a whole. Construction activity is expected to remain uneven across regions.
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|
|
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Construction Industry: Development of European Construction Industry
|
T016
|
|
in %
|
20251
|
2026e
|
2027e
|
|
Western Europe2
|
+0.1
|
+1.9
|
+2.1
|
|
Eastern Europe2
|
+0.5
|
+3.6
|
+3.5
|
|
Europe2
|
+0.2
|
+2.0
|
+2.2
|
|
1_Revised figures.
2_ifo/Euroconstruct (June 2026).
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Expected market environment for Mobility & New Energy
The international automotive industry is expected to face a challenging market environment throughout the remainder of the year. Trade policy uncertainty, material shortages, and the impact of geopolitical conflicts on global supply chains are expected to weigh on the industry in particular. Global light vehicle production is expected to decline by 2.6% in 2026. At the same time, the structural shift toward electrified powertrains is expected to continue. Overall, the market environment for the international automotive industry and its suppliers is expected to remain challenging.
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Automotive Industry: Global Production and Sales Development
|
T017
|
|
in %
|
20251
|
2026e
|
2027e
|
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Light vehicles production2
|
+3.9
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-2.6
|
+1.0
|
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PHEV2
|
+14.8
|
+3.2
|
+14.1
|
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BEV2
|
+29.6
|
+15.4
|
+19.2
|
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Commercial vehicle production2
|
-0.8
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-2.0
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+3.6
|
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1_ Revised data according to S&P Global Mobility.
2_Source: S&P Global Mobility.
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Legend
These contents are part of the Non-financial Group Report and were subject to a separate limited assurance examination.