With Covid-19 increasingly becoming something, we think of as happening in the past, a much greater focus internationally is on the post-Covid recovery. The major aspects of this are centered on the global fight against inflation and general economic resilience.
Central banks are walking a tightrope; the harder they try to reign in the inflationary pressures, the greater risk they run of pushing their economies into recession. Just how resilient the different economies can be during this transitional period will have a bearing on investment markets over the coming months.
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In this update, we explore some of these matters in more detail. In general, investment markets performed creditably in the first quarter of 2023, providing a welcome reward to investors who stayed calm and stayed invested.
In the feature article, we take a closer look at the impact of increasing interest rates on borrowers and outline some strategies that might be available to help offset the effects of significantly higher debt servicing costs.
In the short term we expect uncertainty and market volatility to persist until the global fight against inflation is over. Until then, investors should take a small measure of comfort that, looking into 2024, the outlook for global economic growth is starting to look just a little more positive.
Click here for the full update.
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