How the world economy could avoid recession
Markets are giddy, but there is a long way to go
Last year markets had a terrible time. So far 2023 looks different. Many indices, including the Euro Stoxx 600, Hong Kong’s Hang Seng and a broad measure of emerging-market share prices, have seen their best start to the year in decades. America’s s&p 500 is up by 5%. Since reaching its peak in October, the trade-weighted value of the dollar has fallen by 7%, a sign that fear about the global economy is ebbing. Even bitcoin has had a good year. Not long ago it felt as though a global recession was nailed on. Now optimism is re-emerging.
This article appeared in the Finance & economics section of the print edition under the headline “Dare to dream”
Finance & economics January 28th 2023
- How the world economy could avoid recession
- Argentina and Brazil propose a bizarre common currency
- When professional stockpickers beat the algorithms
- What inflation means for the Big Mac index
- Christians fight about how to serve God and mammon
- Can China fix its property crisis?
- Have economists misunderstood inflation?
From the January 28th 2023 edition
Discover stories from this section and more in the list of contents
Explore the editionMore from Finance & economics
Do tariffs raise inflation?
Usually. But the bigger problem is that they harm economic growth and innovation
European governments struggle to stop rich people from fleeing
Exit taxes are popular, and counter-productive
Saba Capital wages war on underperforming British investment trusts
How many will end up in Boaz Weinstein’s sights?
Has Japan truly escaped low inflation?
Its central bankers are increasingly hopeful
How American bankers dodged the MAGA carnage
The masters of the universe have escaped an anti-globalist revolt
China’s financial system is under brutal pressure
When will something break?