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AI and Emerging Markets to Define the Next Decade, Says Goldman Sachs
17 Nov, 2025
Summary
- Goldman Sachs expects global equities to grow 7.7% annually
- Emerging markets predicted to outperform the US with 10.9% growth
- AI's benefits expected to be widespread, not just confined to Silicon Valley
In a new 10-year global outlook released on November 17, 2025, investment bank Goldman Sachs has identified artificial intelligence (AI) and emerging markets as the key drivers that will define the next decade.
The report forecasts solid long-term returns for global equities, with an expected annual growth of 7.7% - close to the historical median. This buoyancy is supported by factors like nominal growth, profitability, and shareholder distributions, despite concerns around an AI bubble.
Emerging markets are tipped to be the standout performers, with Goldman Sachs predicting a 10.9% advance due to strong earnings per share growth in China and India. Excluding Japan, the rest of Asia is also expected to see a 10.3% rise. In contrast, the US is projected to see the smallest gains of 6.5%.
Importantly, the report suggests that the benefits of AI will be broad-based rather than confined to the tech hubs of Silicon Valley. Countries like Korea, Taiwan, Japan, and China are investing heavily in AI-driven initiatives, with India likely to see the most growth at a 13% compound annual rate.
Overall, the Goldman Sachs outlook paints a picture of a global economy where AI and emerging markets will be the dominant forces shaping the next 10 years.
