Two factors that will help the world dodge a global recession – The Average Joe
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    Two factors that will help the world dodge a global recession

    victorlei

    January 24, 2023

    Global economy, are you here to deliver us some good news?

    Two major factors may help the world avoid a global recession:

    1/ The European Union (EU) remains stronger than expected.

    2022 EU: Dealing with the Russia-Ukraine war, energy shortage crisis and what seemed to be an imminent recession.

    • But… A milder winter and efforts to reduce consumption have lessened the impact of higher energy prices.

    2023 EU: Business activity is expanding, and consumers are feeling more optimistic.

    • S&P Global’s flash Composite Purchasing Managers’ Index (PMI) jumped from 49.3 to 50.2 in January. ****A number greater than 50 means business activity is expanding.
    • Consumer confidence in the Euro region has risen to its highest level in a year — since the Russian-Ukraine war began.

    2/ China reopened its doors in December — leading to a potential economic rebound. Their COVID policies are finally aligning with the rest of the world.

    According to one government scientist, China has reached herd immunity levels, as 80% of its population has been infected with COVID.

    The global economy is expected to grow fast — but economists are concerned about increased demand leading to higher inflation.

    The Average Joe: After the year we’ve been through, we’ll take all the good news we can get. Just don’t let us fall flat on our faces.

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