Summary
- We expect 2023 to be a year of transition, with gradual fading of price pressures allowing policymakers and market participants to take a more balanced approach to assessing growth and inflation dynamics.
- The near-term outlook calls for more of the same: high inflation and rate hikes, albeit at a slower pace.
- China’s economy has been hit by a series of significant and unexpected shocks in 2022, forcing an intra-year adjustment in the policy reaction function balancing debt and growth.
For further details see:
Global Macro Outlook - First Quarter 2023