Are Things Looking Up?
As 2023 began, the global economy focused on inflation and recession fears. Now add geopolitical tensions and domestic challenges in key markets that are slowing return to sustained growth, according to KPMG’s latest Global Economic Outlook report.
Pressure on global supply chains has eased in 2023 and shipping costs have dropped, which should alleviate some inflationary pressures and improve supply capacity, the report contends. However, global trade remains relatively weak. Consumer demand may also pick up in 2023, with European markets already seeing slight improvements.
“How we get back to sustainable, long-term growth is the big question facing boardrooms and political chambers around the world right now,” says Regina Mayor, global head of clients and markets for KPMG. “The actions taken over the coming months are likely to play a significant role in the pace and nature of the world’s economic recovery.”