Recession looms over markets in 2023

Stuck between inflation and recession

As 2023 approaches, a recession seems inevitable. Central banks have stopped talking about a ‘soft landing' and the UK seems to be the first major market to accept that it has already entered a downturn.

Keith Wade, chief economist at Schroders, forecast global growth to slow to just 1.3% next year, compared to 2.7% in 2022. Recessions were predicted across developed markets, with Wade arguing the US would see a 1% drop in GDP in 2023. Goldman Sachs forecast the UK would have an even worse recession than it had initially anticipated, predicting the UK economy would shrink by 1% next year, down from its previous estimate for a 0.4% contraction.  Nikolaj Schmidt, chief international economist at T Rowe Price, explained that as a result of the "immense monetary tightening" over the la...