After Covid-19 caused the global economy to tremble and pause, Vladimir Putin’s sudden invasion of Ukraine added fuel to the fire, creating a rollercoaster year with twists and turns. The world was left wondering when recovery would come as these events unfolded one after another. Experts predict that 2023 will be the year of soft landing.
This year, inflation is projected to remain high due to the disruption it has caused in markets over the past few years. As we come out of an era of low-interest rates and loose monetary policies, a recession or even an inflation crisis could be imminent. Further complicating matters, global economies will also face a perfect storm of issues in 2023!
BNY Mellon Experts:
As 2023 begins, investors will carefully monitor inflation as the key metric for their investments. Despite our projection of a 70% chance for an impending global recession, it is unlikely to last long or have extremely heavy impacts on markets. We anticipate volatility during the early months of this year.
An economic downturn is anticipated to strike the US in early 2023 and spread globally. Initially, earnings on the stock market will decrease; however, experts anticipate that investors will gain back confidence as the year progresses, with an expected recovery by late 2023 or 2024.
Deutsche Bank Experts:
Investors and central banks anticipate a brighter future for 2023. Our assessments predict that although inflation will drop, it won’t go below the target estimates established by respective central banks. Looking forward to 2023, we anticipate that the US dollar will stabilize. At this juncture, inflation predictions in Germany are estimated at 7%, 6% for eurozone countries, and 4.1% for the United States. We deem energy as one of the main contributors to these figures of inflation rates in respective markets.