New Year 2023 Outlook: Global Institutions express inflation, recession concerns globally, but remain bullish on India

2023 Outlook: Global institutions have shared their outlook regarding the economy and markets for the year 2023. Most of them have expressed concerns about recession and considered inflation to be a difficulty in 2023 as well, but they remain bullish on India.

Credit Suisse’s outlook for 2023

Brokerage firm Credit Suisse has predicted that recession is expected in the Eurozone and United Kingdom in the start of the year, but as the monetary policy and inflation has peaked out, it is expected to slow down by the end of 2023. 

A fall in inflation will give higher returns on fixed income assets, i.e.- government bonds, municipal bonds, corporate bonds, and asset-backed securities such as mortgage-backed bonds. 

The report further states that Equity performance will remain sluggish and earnings will bring support.

According to Credit Suisse, the demand for cyclical commodities may see a slowdown. These are commodities whose price goes up and down by large amounts following the level of activity in the economy as a whole.

Also Read: New Year 2023: Set your financial goals for the coming year in 6 easy steps – Experts explain 

Currency impact: Credit Suisse 

According to the report, initially, the Dollar will be supported by hawkish US Federal policy but could partly weaken if the rates come down. 

Real Estate: Credit Suisse

Credit Suisse’s report states that due to rising interest rates and weaker economic growth, 2023 could be challenging for real estate 

Morgan Stanley’s Outlook for 2023

Another report by Morgan Stanley forecasts that due to slowdown in economic growth and inflation the Dollar will peak out, which will benefit the high-grade bonds and emerging markets.

Stop in rate hike 

The report has said that the Fed and European Central Bank are expected to stop hiking rates by March and the last rate hike will be in January and March; and from April onwards the global market will be on the path of growth.

J P Morgan Asset Management’s Outlook for 2023

According to J P Asset Management’s report, the global inflationary pressures will see a slowdown. 

Fidelity International’s Outlook

A report by Fidelity International has also expressed concerns of recession and given an underweight rating to equities and overweight to government bonds. 

Further taking equities into consideration Fidelity International has said that they give preference to US equities than to Europe. They have taken a Neutral stance on the UK, Japan and emerging markets.

According to the report, the brokerage firm is bullish on India and will focus on high quality stocks. 

Invesco Asset Management’s Outlook 

Invesco Asset Management is bullish on Indian and US markets. The brokerage firm is focusing on reducing defensive portfolios and will invest money in high earning stocks of specific regions.

ING Bank's Outlook 

According to a report by ING Bank, inflation will be a concern in 2023. And as there was volatility in 2022, the next year will also experience volatility in commodities.

ING Bank believes that due to energy crisis and consumer demand, sentiment decisions will be taken in 2023. Also, geopolitics concerns will remain important for financial markets and the global economy.

Click here to get more updates on Stock Market I Zee Business Live