Green shoots for global markets in 2023?

There are many risks for the global economy in 2023, but there are also encouraging signs. Asia is benefitting from the reopening of China and improving investor confidence. Reliable cash flow and dividends are likely to be highly valued by investors this year

Sailing boat at sea with other boats in the distance

Last year saw a significant adjustment in financial markets, as inflationary pressures ushered in a new era of rising interest rates. Markets also had to contend with sliding economic growth and a squeeze on household and corporate spending. So far in 2023, the outlook still warrants caution, but there are green shoots emerging.

These green shoots are perhaps most evident in Asia. China is reopening as it moves away from its zero-Covid policy. This creates economic momentum across the region, as activity resumes. At the same time, Asia’s post-pandemic debt hangover is not likely to be as severe, with governments remaining more circumspect about spending than their Western peers and inflationary pressures lower. This means the path to recovery appears clearer.

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