Gloomy economic outlook for 2023, but bright spots for 2024

Gloomy economic outlook for 2023, but bright spots for 2024

Recession, declining inflation and eventually interest rate cuts – these in brief are Group Economics’ expectations for 2023. With a well-attended webinar and the publication "Five Key Questions for 2023", Group Economics shared its economic forecast for 2023 with the world.

The energy crisis is expected to remain the dominant theme in 2023, provided no new black swans along the lines of the Russia-Ukraine war enter the picture. The economists expect European industry to make it through without major output losses next year, but the European economy will still be hit by the collapse in real incomes due to high inflation and the jump in interest rates. The silver lining is that inflation is expected to come down significantly, enabling rate cuts by central banks by the end of the year. This will set the stage for a modest recovery in 2024.

• You can watch a recording of the Outlook 2023 webinar here

• Read the Global Outlook 2023 - Five key questions for 2023 here