Economic Outlook for 2023 Through Predictions from Major Banks

2022 was a difficult year as economies just emerging from the pandemic had to face the Russia-Ukraine war, supply chain disruptions, and the highest inflation in 40 years. This led central banks to raise interest rates and tighten monetary policy, making the risk of a global recession more pronounced.

The key question for 2023 is whether central banks can push back inflation and minimize recession risks? Investment banks all agree that this economic cycle is quite unique and very different from previous recession cycles due to the rapid recovery of the labor market post-pandemic and the resilience of consumer activity. Therefore, many investment banks believe the Fed can achieve a soft landing. However, others still think a mild recession could occur after businesses exhaust their cash balances from the previous period, consumer demand weakens, and recent bond market instability. 

In addition, the banks also predict the business environment, alongside changes in economic relations in 2023 following the geopolitical events of 2022.

Starting the new year, Viet Hustler will summarize for readers the key points from reports on the global economic outlook for 2023 from major investment banks around the world.

Economic Growth in 2023

Allianz predicts Western countries will experience a mild recession: