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What will the global economy look like in 2023?

The global economy is entering 2023 on the brink of recession after a year of war, inflation and pandemic uncertainty. Will China's exit from zero-Covid spur a recovery? In this series, South China Morning Post commentators look at the key trends shaping the global economic outlook in 2023.

Updated: 05 Jan, 2023
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[1]

Macroscope | 2023 could be a year to remember as investors’ appetite for risk returns

With so much bad news already factored in during 2022, there is the chance markets could be surprised on the upside by unexpectedly better news in 2023. The stock market’s reputation as the top predictor of the economic cycle means investors should anticipate better news rather than looking over their shoulders.

26 Dec, 2022
An employee works on the assembly line of Great Wall Motors in Chongqing on September 22. China’s expected recovery should be a blessing for global recovery and world trade growth in 2023 as economic activity speeds up again. Photo: Xinhua
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[2]

Macroscope | Expect a bumpy 2023 as central banks face high inflation and low growth

Risk of policy error is rising as policymakers work to cool inflation without putting out demand, especially as growth slows in the US and Europe. Inflation in Asia is less of a challenge but Japan’s situation is precarious and policymakers must be vigilant.

30 Dec, 2022
US Fed chairman Jerome Powell speaks at the Brookings Institution in Washington, DC on November 30. Investors are concerned that the central bank’s resolve to keep raising rates could tip the economy into a recession. Photo: Bloomberg
[4]

Opinion | What trends will shape the global economy in 2023?

Optimism is starting to shine through as China pivots away from “zero Covid”, inflation eases and interest rate increases abate. Worrying trends such as ageing populations and high healthcare and energy costs remain, but there is reason to believe this optimism is more than wishful thinking.

31 Dec, 2022
People pose for selfies outside a popular bakery in Beijing on December 28. China says it will resume issuing passports for tourism in another big step away from pandemic controls that isolated the country for almost three years, setting up a potential flood of Chinese going abroad for next month’s Lunar New Year holiday. Photo: AP
[5]

Macroscope | Liquidity crisis could be global financial system’s ‘silent killer’ in 2023

Few people seem aware as a liquidity crisis offers few clearly visible symptoms until it begins to affect the internal organs of the financial system. It could be that the potential risks involved will not crystallise on a scale that threatens the financial system, but past crises offer little reassurance.

31 Dec, 2022
An employee of the foreign exchange trading company Gaitame.com works in front of a monitor showing a graph of the Japanese yen exchange rate against the US dollar at its dealing room in Tokyo on December 20. Photo: Reuters
[6]

The View | Five market indicators investors should watch in 2023

This year may prove less disastrous for bond and equity markets than 2022, but the need to bring down inflation by raising interest rates has not gone away. While the outlook is confusing, there are some useful gauges to keep within sight, including interest rates, employment levels and property prices.

05 Jan, 2023
Pedestrians pass the New York Stock Exchange (NYSE) in New York, US, on January 3, 2023. Photo: Bloomberg