Swiss Bank EFG Releases 2027 Outlook Highlighting AI, Energy and Growth
Swiss bank EFG projects 3.5% global growth for 2027 while warning that rising energy costs could spark further interest rate hikes. The report highlights AI infrastructure spending, cybersecurity demands, and renewable energy investments impacting global markets and Israel.
Swiss bank EFG has released its ten macroeconomic forecasts for 2027, highlighting growth trends, artificial intelligence investments, and energy challenges that directly impact global markets and Israel's high-tech sector.
The global economy is projected to maintain a steady expansion of approximately 3.5%, matching the pace of 2026, with the United States leading among developed nations. Analysts point to Israel's recovery potential, noting the significant influence of Nvidia on macroeconomic data, while a stable geopolitical environment in the Middle East could provide additional economic momentum.
Inflation Risks and Energy Pressures
Rising energy costs may compel central banks to implement further interest rate hikes to curb inflation, posing a challenge for mortgage holders worldwide. However, markets might be overestimating the required number of rate increases if price surges remain primarily concentrated in the energy sector.
Geographic diversification is also shifting, with nations such as India, South Korea, and Saudi Arabia playing increasingly vital roles in the global economy. EFG highlights existing ties with India and South Korea, alongside potential expansions of the Abraham Accords.
AI Investments and Cybersecurity Opportunities
Artificial intelligence remains a central theme across multiple forecasts. Cloud providers are projected to outspend their operating cash flow on infrastructure, bridging the gap through debt and extending financial risks into the bond market.
At the same time, automated tools capable of rapidly identifying software vulnerabilities can be weaponized by attackers, driving up demand for security and oversight. For Israel's cybersecurity industry, this evolving threat landscape presents substantial commercial opportunities. In healthcare, AI is expected to accelerate drug discovery and streamline administrative tasks, provided it delivers measurable financial returns.
Power Infrastructure and Alternative Assets
Powering the artificial intelligence boom requires massive energy investments. Data center demands and energy independence initiatives will spur capital allocation toward electricity production, smart grids, and storage solutions. In Israel, this includes expanding natural gas infrastructure, solar energy projects, and grid modernization to meet the official target of generating 30% of electricity from renewable sources by 2030.
Additional opportunities span private equity, private credit, and infrastructure investments, focusing on corporate restructuring and liquidity solutions. "Challenges are real, but so are opportunities," stated Moz Afzal, Chief Investment Officer at EFG.
