Global Economic Landscape Shifts: From Monetary to Fiscal Stimulus
According to the latest 2026 economic outlook report from Standard Chartered, the engine driving global economic growth is undergoing a profound transformation, with the core momentum gradually shifting from monetary policy to fiscal policy.
Fiscal Expansion Becomes the Mainstream Trend
The report highlights that numerous countries will adopt proactive fiscal policies in 2026, including increasing infrastructure investments and expanding social welfare expenditures. This trend will lead to a continuous rise in government debt levels, making debt sustainability a critical challenge for policymakers worldwide.
Market Liquidity May Reach a Turning Point
- Market liquidity peaked in 2025 after several years
- A liquidity contraction may occur in 2026
- Capital is accelerating its shift from financial systems to the real economy
Inflation Risks Are Underestimated
While most central banks maintain cautious optimism about inflation, the report warns that the combination of current high living costs and fiscal stimulus could intensify inflationary pressures, leaving monetary policymakers in a reactive position. As the effects of fiscal stimulus become apparent, inflation trends may exceed market expectations.
The Dilemma Facing Policymakers
The report's author emphasizes that central banks must balance sustaining economic recovery with controlling inflation while addressing rising government debt levels. This complex policy environment will test the decision-making capabilities of major global economies.