The global economy has been more resilient than people thought - can it last?

'Something always breaks'

clock • 4 min read

The economic consensus last year was that Europe will enter a recession because of the energy crisis.

While there was less conviction on a US recession, the extreme inversion of the yield curve and the plunge in stock prices last year suggests markets were nervous. Fast-forward to the start of this year, economists are busy revising up their 2023 GDP growth forecasts for major economies. This benign assessment is being challenged again amid the fallout from a couple of bank failures. Although the events are largely idiosyncratic, it is a reminder that as interest rates rise in an abrupt manner, something always breaks. Deep Dive: Market turbulence highlights diversification role of pr...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

How big an impact could global elections have on portfolio allocation in 2024?

How big an impact could global elections have on portfolio allocation in 2024?

US, UK and India main focuses

Investment Week
clock 19 February 2024 • 8 min read
Hotter than expected US inflation tempers Fed rate cut expectations

Hotter than expected US inflation tempers Fed rate cut expectations

Annual price growth falls to 3.1%

clock 13 February 2024 • 1 min read
Investors turn defensive in January as rate cut expectations change

Investors turn defensive in January as rate cut expectations change

State Street Risk Appetite index

clock 08 February 2024 • 1 min read
Trustpilot