Mitsubishi UFJ Financial Group‘s capital markets strategy team released its 2023 outlook titled “The New Macro Supercycle,” providing a forward-looking perspective on the global economy, monetary policy and markets in the next 12 months and highlighting prevalent themes driving the worldwide economic environment in the decade ahead.
“The ‘Great Moderation’ of low inflation and volatility during the past 40 years is over,” Tom Joyce, head of capital markets strategy at MUFG, said. “Following the ‘polycrisis’ of 2022 stemming from concurrent geopolitical, energy and economic shocks, we have entered a more clearly defined period for economies and markets.”
Joyce said that although the last year was challenging, the recession fears of 2023 are likely less concerning and more greatly reflected in asset prices than the unexpected inflation and U.S. Federal Reserve tightening of 2022. In addition, he said we began 2023 with positive surprises across the world’s three largest economies, with rapidly declining U.S. inflation, the reopening in China and lower energy prices from warm winter weather in Europe.
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