Deloitte Access Economics has published an interesting note on the demand-side shock brewing for the global economy on the back of soaring energy prices and rising interest rates:
The deterioration of the outlook for the global economy is very evident in the OECD’s latest economic projections, released in late September. Forecasts for growth in 2023 were revised down across the board. The US economy is projected to grow by just 0.5% in 2023, down from a forecast of 1.2% in June. The Eurozone is projected to grow by just 0.3% in 2023, down sharply from a forecast of 1.6% just 3 months ago. Germany, the largest economy within the Eurozone, is now forecast to shrink 0.7% in 2023, a stark revision to last quarter’s forecast of 3.1% growth.
In amongst the weaker global outlook, Australia is projected to grow 2.0% in 2023, a downward revision of 0.5% from forecasts in June (though still at the upper end of growth for developed economies)…
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
