The latest Chief Economists' Outlook for January 2026 is painting a more optimistic picture compared to last year—but here's the catch: recovery won't be evenly distributed.

While sentiment has improved overall, the growth trajectories across different regions tell very different stories. Some economies are accelerating, others facing headwinds. This fragmentation matters big time for market participants trying to navigate asset allocation and long-term positioning.

The divergence means traditional hedging strategies might need a rethink. When global growth paths diverge, correlations between assets shift, and that's where opportunities—and risks—emerge. Whether you're tracking macro trends, thinking about inflation cycles, or planning your 2026 portfolio strategy, understanding these regional differences is crucial.

The full outlook breaks down what to expect across key markets. Worth a read if you're serious about understanding how macro conditions could shape financial markets this year.