Assessing non-payment risk across global sectors

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More challenging macro environment. Global GDP growth is projected to decelerate to +2.5% in 2023, as low as in 2019. Advanced economies will likely dodge a full recession but will experience low growth in 2023 and 2024. Post-pandemic, consumers have shifted from buying goods to spending on services, which is dragging global trade and all related sectors. The US economy remains robust despite a challenging monetary environment, while the Eurozone grapples with minimal growth and stubborn inflation issues. As central banks remain determined to shake off inflation, interest rates should remain higher for longer, which will harm highly leveraged sectors and also eventually dampen capex. China’s growth outlook has dimmed due to various challenges ranging from issues in the real estate sector to low consumer confidence, and emerging markets should also see lower growth