Two factors that will help the world dodge a global recession
Economy
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.
