What to anticipate for 2023

The year 2022, was a test for the economies, in terms of the measures and ways to curtail economic difficulties of inflation and the recessionary effects. It’s been an important year for all the prominent central banks across the globe with the hiking of interest rates to bring inflation under control and take ample steps to reduce the recessionary impact in the respective economies. The impact of the Russia-Ukraine war and its constant development in terms of damage also added to economic tensions and supply constraints. The sanctions on Russia have made the pricing of oil more costly owing to the price caps and economic sanctions to prevent further damage in Ukraine. If one ponders overall, has been an eventful year.

Looking forward to 2023

Within weeks, we would be stepping into a new year, we would be expecting a better picture than our previous year. But things would not be the same, as we enter 2023, we are entering a global slowdown. Prominent experts are projecting a slowdown between 1-3% which is a lot for the world economies to digest, and it is more likely to be accompanied by negative growth for at least the first two quarters of next year.

It’s a difficult phase for most of the economies, with China facing more stringent lockdown measures, which would likely affect trade and commerce across the globe. The shocks for the developing economies would be more prominent. This would be a tough situation to watch and we need to see what measures and policies would shield them from uncertain scenarios and complications.

The tighter monetary policies would continue to continue until 2023 since it’s the only way to keep the economies from a massive crash of the economy. The rising fuel prices and low income in the household are more likely to be prominent in many economies in the world.

From seeing the projection from prominent firms, some amount of growth for Asian economies is more likely. Despite the slowing of the world economy, there are chances for Asian economies to show some amount of growth at least towards the mid or end of 2023.

The bigger picture….

Inflation would continue to be the talk in all the economies, and with the winter already kicking in the United States and Europe, it remains to see how the heating and fuel prices are balanced out. It will be a balancing act for these prominent economies.

Inflation would likely be at a moderate level is what many of the prominent forecasters are looking at for 2023. The main focus for all the economies needs to focus on price stability for all the economies. If the basic cost of living standard is maintained, it's easier to make structural reforms to improve stability on production and supply bottlenecks that many of the economies are trying to tackle for a while.

The efforts to restore economic stability are what all economies are aiming at. With the recession fears and job losses in the picture, policies, and measures are to be a global effort. A helping hand to recover from the damage done by the pandemic and the war in Ukraine is the only way to reduce the cyclical impact of the recession. A global effort is what would help in terms of reducing the impacts of the slowdown.

Wishing all a Merry Christmas and a Fruitful New year 2023. 🎅