MER Jan. 2023

The Russia-Ukraine war, Covid-19 related restrictions in China, and disrupted global supply chains which fuel inflation to record high, have all impacted on the prospects of economic growth post-pandemic era. According to Galt & Taggart in its 2023 investment outlook, “these developments coupled with the aggressive monetary tightening observed in most major economies has led capital markets to struggle, with both equities and fixed income experiencing sizeable losses.”

Despite overall positive forecasts for financial markets, Galt & Taggart is projecting that 2023 would be full of volatility, as fundamental challenges from 2022 are yet to be resolved.

The investment bank also sees global economic growth slowing down, with emerging markets outperforming developed ones, while Inflation is expected to moderate globally, allowing central banks to pivot in late 2023. Meanwhile, European countries continue to face energy crisis because of the ongoing war between Russia and Ukraine, a war that has escalated
geopolitical tensions and led to disruption in supplies of petroleum products and other commodities.

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