The year 2023 offered respite in some ways: Inflation sobered from historically high levels, interest rates plateaued, the feared US recession never happened, and global growth held up. This turned out to be a positive surprise for central bankers, economists, and edgy investors.
The year ends on a hopeful note too. US and China, the production and consumption engines of the world, announced much-awaited policy cues. The US Federal Reserve ended its aggressive rate hike campaign and signalled rate cuts of 75 basis points in the coming year while China announced a record stimulus package of $112 billion to revive its economy. How will these measures play out next year?