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What does 2023 hold in store for the world?

YAŞAR SÜNGÜ,  Wednesday 10:50, 23 November 2022

In 2021, the world struggled to stay healthy during the pandemic, and then in 2022, it had to struggle with the inflation that accompanied production cuts.

First of all, the economic recession that accompanied the pandemic, and then the frequent adverse weather conditions, impacted many sectors from food production to tourism and waged workers.

In other words, we spent the year 2021 fearing for our lives, and the year 2022 was spent by workers struggling under financial hardships as they try to make ends meet.

We do not know how 2023 will go.

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As the world enters the third quarter of 2022 in the shadow of economic turmoil and geopolitical tensions, the first predictions for 2023 have started to come. The Industry Outlook 2023 report, which evaluates 2023 expectations in the automotive, consumer products, energy, finance, health, technology and tourism sectors, has been published by the Economist Intelligence Unit, the research, and analysis unit of the world-famous The Economist magazine.

Emphasizing that the demand for renewable energy will increase by 11 percent next year, the report also lowered the global economic growth forecasts for 2023.

Pointing out that the new year will bring new opportunities and challenges, the general outlook points out that high prices will benefit raw material producers, and that rising energy costs in many sectors will have a negative impact on operating profitability.

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According to the report, in 2023 there will be stagnant growth in energy consumption and demand will increase by only 1.3 percent globally.

While it was stated in the report that extreme weather events and changing climatic conditions will challenge countries, forecasts on the renewable energy front remained optimistic.

Although the energy crises triggered by geopolitical tensions delay the transition to green energy, a growth of 11 percent is expected in the renewable energy sector next year, led by the Asian market.

Solar and wind energy alternatives, which offer a much brighter outlook compared to fossil fuels, are expected to hold strong opportunities throughout 2023. But the business world's concern is the attitude of central banks.

According to business representatives, the tightening policies of central banks increase financing costs and this situation keeps renewable energy investments at a limited level. However, the signs of a slowdown in interest rate increases from the US central bank officials may change the course during the year.

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The report also points out that global retail sales will increase by 5 percent in 2023, but it is stated that rising costs will weaken profitability.

It is estimated that the growth in global e-commerce, which has made a big leap in the epidemic, will be limited in 2023.

The Economist predicts 6.1 percent growth for e-commerce next year.

Behind this situation lies inflation, which has peaked values in many parts of the world, suppressing consumer demand and reducing the appetite for spending. Despite this, the fact that the share of e-commerce in global trade will exceed 14 percent points to the future of the industry and the permanence of the online shopping habit.

Especially with the growing middle class, increasing internet penetration and digitalization, a 20 percent growth in online sales is expected for economies such as the Middle East and Africa, and Latin America.

The business world thinks that the slight slowdown in developed markets will be offset by the rise in emerging markets.

Although The Economist predicts that remaining high-interest rates will reduce corporate investments, the business world is hopeful for the new year.

The world is more prepared, vaccinated, immune to what may happen to it this year, and preparing for the new year in a more resilient way.

The rule that applies to everyone and is mandatory to apply is as follows; Life is like riding a bike, you have to pedal to keep your balance and move forward.

#2023
#Expectations
#Inflation
#Financial
#Hardship
#Recession
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