“The last two years in the history of the world have not been easy: in 2021 we fought a pandemic, and in 2022 we had to face unprecedented inflation. As for the upcoming 2023, we should not expect miracles from it: analysts predict a slowdown in global economic growth, green predict lower energy investment and lower operating profitability.”
Publika.az “Yeni Şafak” columnist Sungü writes about this.
He noted that now the world has entered the third quarter of 2022, remaining in the shadow of economic turmoil and geopolitical tensions, the first forecasts for the next year have already begun to appear. The well-known analyst group of “The Economist” magazine published a report on “Industry Outlook – 2023” in which they assessed the prospects for the automotive, consumer goods, energy, financial, healthcare, technology and tourism industries for 2023. The report notes that demand for renewable energy will increase by 11% next year, while forecasts for global economic growth have been downgraded.
“The general view of businesses that 2023 will bring new opportunities and challenges shows that high prices will play into the hands of raw material producers, and high energy costs in many industries will have a negative impact on operating margins,” Sungü explained.
“The report also notes that energy consumption growth will stagnate in 2023, with demand growing by just 1.3% globally.
While energy crises stemming from geopolitical tensions have delayed the transition to green energy, analysts are predicting 11 percent growth next year in the renewable energy sector, led by the Asian market. Solar and wind energy alternatives are expected to open wide opportunities during 2023.
However, the business world is worried about the position of the central banks,” the Turkish observer writes.
“Central bank tightening increases financing costs, which limits renewable energy investments. But recent signals from US Federal Reserve officials to slow interest rate hikes could change the course of the year,” he said.
The report also highlights that global retail sales will grow by 5% in 2023, but rising costs will hurt profitability, and growth in global e-commerce, which has taken a big leap in the face of the pandemic, will remain limited in 2023. “The Economist” predicts online sales growth next year 6.1% predicts.
In regions such as the Middle East, Africa and Latin America, online sales are expected to grow by 20 percent, especially on the back of a growing middle class, internet penetration and digitization.
“The business world hopes that the slight slowdown in developed markets will be compensated by the growth in emerging markets. Although “The Economist” predicts that high interest rates will lead to a decrease in institutional investments, business has high hopes for the coming year,” Sungü concluded.
Huseyn Ibadli
#Pessimistic #predictions