As the global economy heads into 2026, market participants are preparing for a period of heightened volatility driven by shifting U.S. tariff policies, massive fiscal stimulus, and a relentless artificial intelligence (AI) investment boom. According to recent analysis by Franklin Templeton, these factors are reshaping economic expectations and will remain defining features of the year ahead. While the long-feared "stagflation" has yet to materialize, the path forward is marked by an uneven growth landscape where macroeconomic forces have firmly reclaimed the steering wheel.
The global cotton market has entered a period of calm consolidation as 2025 draws to a close. According to the December 2025 Economic Letter from Cotton Incorporated, most major cotton benchmarks showcased limited movement over the past month, underlining a broadly stable environment for the textile supply chain.
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