World Economy’s Soft Landing Hopes Boosted as 2023 Begins
- China’s sudden reopening changes its economy’s growth outlook
- Warmer weather has taken the edge off Europe’s energy crisis
The ebbing of inflation will support the purchasing power of consumers who spent much of the last year squeezed by rising prices.
Photographer: Damian Lemański/BloombergThis article is for subscribers only.
The world economy is beginning the new year on a more optimistic note, though that’s no guarantee 2023 will end that way.
A variety of factors – a sooner-than-expected reopening of China’s economy, a warmer-than-normal winter in energy-strapped Europe and a sustained fall in US inflation – are combining to dissipate some of the gloom that engulfed financial markets at the end of 2022 and fanning hopes the world can dodge a recession.