Oxford Economics projects robust growth for the U.S. economy in 2026 and 2027, driven primarily by investment in artificial intelligence, tax incentives, and spending by high-income earners. The institute forecasts U.S. GDP growth of 2.8% in 2026 and 2.3% in 2027, following a 4.4% annualized growth rate in the third quarter of 2025. Investment in AI-related and non-technology sectors is rising, productivity continues to improve, and rising stock markets and tax cuts are supporting consumer spending. Inflation is expected to slow to 2.4%, creating conditions for two Federal Reserve rate cuts next year. Declining immigration and weakening housing demand could further ease inflationary pressures. Overall, the U.S. economic fundamentals remain strong, but it remains highly sensitive to stock market performance. (Jinshi)