Just like that, another year draws to a close. And while everyone is deep into the hustle and bustle of the holidays, it’s already time for businesses to look ahead.

The 2025 business landscape resembled a rollercoaster with shifting global dynamics and rapid technological acceleration mixed with rising goods prices and tighter budgets. Global trade was especially volatile due to tariffs and geopolitical tension.

As this turbulent ride comes to an end, should consumers and businesses alike be optimistic for what 2026 can bring? Let’s find out.

2026 at a glance

Early indicators suggest that 2026 is another mixed picture. Caution is still required; inflation remains a cause for concern.

The US government faces mounting pressure from heavy spending and rising debt levels. Additionally, many US workers report that wage increases, if any, do not keep pace with the cost of living, forcing them to tighten household budgets further and look for higher-paying jobs.

However, there are still opportunities for select industries and those prepared to navigate a slower, more uneven economic environment. Companies that stay agile, invest strategically, and leverage emerging trends may still achieve growth despite the broader economic challenges.

Tariffs will push prices higher

Tariff woes are expected to continue affecting both businesses and consumers in 2026. Reciprocal tariffs on goods are likely to result in higher costs for companies. While it is possible to absorb these costs, most will be pushed to pass on these costs to consumers. In fact, big-name brands like Walmart, Nintendo, and Nike have announced plans to increase prices of their offerings to offset higher costs.

Government spending and debt hinder growth

According to Business Insider, government spending “could also hinder growth in the medium term.” At the same time, the country’s long-term fiscal outlook remains challenging. The US government is projected to run a cumulative deficit of $21.1 trillion over the next decade, adding even more pressure to economic stability. Rising debt levels may limit the government’s ability to respond to future downturns and could contribute to greater economic uncertainty.

Lower oil prices

Oil prices are projected to decline in 2026 due to oversupply. This can be a welcome relief for businesses and consumers who rely heavily on fuel and energy. Lower prices can help reduce costs across the board, from transportation and logistics to production. However, nothing is for certain, as geopolitical tensions could still trigger short-term price fluctuations despite the broader downward trend.

AI acceptance grows among employees and consumers

Workforce and customer adoption of artificial intelligence (AI) tools accelerates, opening new opportunities for efficiency and innovation. For example, agentic AI—systems capable of autonomously executing tasks, making recommendations, and taking action—continues to gain traction. This development adds value across the value chain, including procurement, after-sales, R&D, and marketing and sales.

Employees are now viewing AI as a tool that reduces repetitive work and supports more strategic responsibilities, while consumers are becoming more comfortable interacting with AI-enabled services. However, there is a caveat: businesses must remain transparent about how they use AI and how customer data is managed.

It’s essential for businesses to keep pace with the growing acceptance of AI and prioritize transparency, accountability, and user trust. This way, they can unlock greater efficiency, deliver better experiences, and position themselves for sustainable growth in 2026 and beyond.

Navigate 2026 with clarity and cautious confidence

It’s true: the outlook for 2026 is far from sunny, with rising tariffs, geopolitical tension, and fiscal strain. But there are still clear openings for growth. Lower oil prices, a more AI-ready workforce, and advancing digital capabilities offer real opportunities for businesses.

The year ahead will be challenging, but those who stay agile, proactive, and well-informed are far more likely to thrive. Don’t wait for perfect conditions; instead, move confidently through the marketplace with strategic preparation, resilience, and smart resource allocation.

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