From China to inflation, 5 economic trends to watch in 2023 – Al Jazeera English

by | Dec 27, 2022 | Financial

The global economy had a rocky year in 2022.As the worst of COVID-19’s effects on public health receded, the war in Ukraine and China’s tough “zero COVID” curbs injected new chaos into global supply chains. Food and energy prices soared as inflation in many economies hit four-decade highs.
After a tumultuous year, the global economy heads into 2023 in choppy waters.
Russian President Vladimir Putin’s war in Ukraine continues to roil food and energy markets, while rising interest rates threaten to smother the still-fragile post-pandemic recovery.
On the positive side of the ledger, China’s reopening after three years of strict pandemic curbs offers a confidence boost for the global recovery — albeit tempered by fears that the rampant spread of the virus among the country’s 1.4 billion people could give rise to more lethal variants.
Inflation and interest rates
Inflation is expected to decline globally in 2023 but nonetheless remain painfully high.
The International Monetary Fund (IMF) has predicted global inflation will hit 6.5 percent next year, down from 8.8 percent in 2022. Developing economies are expected to have less relief, with inflation projected to only ease to 8.1 percent in 2023.
“It’s likely that inflation will remain stubbornly higher than the 2 percent that most Western central banks have set as their benchmark,” Alexander Tziamal …

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