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VIEW: CS Forecasting Growth Slowdown, US To Avoid Recession

GLOBAL

Credit Suisse expects global growth to slow to 1.6% in 2023 but that none of the major central banks will begin cutting rates next year.

  • Recessions are predicted in the euro area and the UK in mid-2023 due to higher inflation and rates, but the US to avoid a recession.
  • It expects growth in Australia also to slow to 1.6% in 2023 from 4% this year, which should drive an increase in the unemployment rate to 4.5% by the end of next year from 3.4% currently.
  • Inflation should peak at the end of the year at 8% before moderating to 3.5% by end-2023, which is well below the RBA’s forecast of 4.7%.
    - The Australian

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