City warns of risks to Glibal's 2027 profits
Citibank expects global earnings growth to continue strongly next year, with two main risks threatening this outlook: a sharp slowdown in growth pace and a heavy concentration of growth in the technology sector. Global profit growth is projected to reach 35% this year, then decline to 16% in 2027, which could lead to stable stock revenues at their current levels—especially if the slowdown persists. The report indicates that 2027 will be the second strongest year for earnings growth, with the technology sector contributing over 70%. This reflects a very high focus on a single sector and underscores a trend toward a more defensive market, characterized by dominance of defensive sectors, healthcare, and energy.
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