The battle against inflation

The global economy surpassed $100 trillion for the first time in 2022 but will stall in 2023 as policy makers continue their fight against soaring prices, the British consultancy said in its annual World Economic League Table. The cost of bringing inflation down to more comfortable levels is a poorer growth outlook for a number of years to come.

Industry leaders call 2023 to be a year of the technology revolution. Powered by India's promising growth roadmap, 2023 has the potential to provide the impetus required for India to become digitally ready and lead technological advancements for the rest of the world to follow.

After data was identified as the new oil, now the turn of Semiconductors could be described as the new oil for the global economy, a commodity essential to the production of almost everything. Moreover, as the world continues to shift toward more digital interaction and new forms of energy and transportation, it is likely that global demand for semiconductors will grow rapidly.

Experts say, Inflation is “likely to moderate” next year, but the slowdown in global growth “may act as a drag on output”. The global environment has several risk factors, including the energy crisis in Europe, the battle to contain inflation to avoid recession and ongoing geopolitical conflicts,

As per a report, the battle against inflation is not won yet. We expect central bankers to stick to their guns in 2023 despite the economic costs. The cost of bringing inflation down to more comfortable levels is a poorer growth outlook for a number of years to come.

The findings are more pessimistic than the latest forecast from the International Monetary Fund. That institution warned in October that more than a third of the world economy will contract and there is a 25 percent chance of global GDP growing by less than 2 percent in 2023, which it defines as a global recession.

China is now not set to overtake the US as the world’s largest economy until 2036 at the earliest — six years later than expected. That reflects China’s zero Covid policy and rising trade tensions with the west, which have slowed its expansion.

The consequences of economic warfare between China and the West would be several times more severe than what we have seen following Russia’s attack on Ukraine. There would almost certainly be quite a sharp world recession and a resurgence of inflation, as per CEBR.

Emerging economies with natural resources will get a “substantial boost” as fossil fuels play an important part in the switch to renewable energy. Going with the report, India will become the third $10 trillion economy in 2035 and the world’s third largest by 2032

Finally, barring the pandemic and the global financial crisis, next year may mark the lowest global growth since the millennium began.