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MNI Insight: Global Macro Chart Pack - 2023 Is Likely To Be A Bumpy Ride

EXECUTIVE SUMMARY:

  • 2022 finished on a soft note for global trade/growth indicators. Early indications are that 2023 has started on a better footing, with key PMIs proving resilient, while consensus forecasts are generally nudging higher for key economies/regions but official projections suggest 2023 will be a challenging year.
  • How global growth expectations unfold will be important for the USD, particularly in the EM FX space, notwithstanding Fed outcomes and outlook.
  • Inflation is the other key watch point. 2023 could see more diverges in inflation outcomes, which is already playing out in Asia. This in turn is driving divergences in policy outcomes. How inflation evolves will feed back into broader risk appetite in the equity space and can also influence growth expectations via the tightening/money supply channel.
  • See full chart pack here:

Global Macro March 8 2023 .pdf

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