Economic and Strategy Viewpoint Q4 2022

Schroders
By December 5, 2022 15:33

Economic and Strategy Viewpoint Q4 2022

The coming year is expected to be one of recession for the advanced economies with the eurozone now expected to join the US and UK in recording a fall in output for 2023 as a whole. The emerging markets have also been downgraded, but we still expect a modest pick-up here in 2023 as China revives.

 Inflation is expected to decline in 2023 in response to weaker growth and the creation of spare capacity in the advanced economies. Stable commodity prices and an easing of supply bottlenecks also help ease inflationary pressures.

Although inflation is not expected to return to target until 2024 this should not prevent central banks from easing policy. The US Federal Reserve (Fed) is likely to ease toward the end of next year and we anticipate the European Central Bank (ECB) and Bank of England (BoE) to be cutting in 2024.

Schroders
By December 5, 2022 15:33

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