The world economy is beginning the new year on a more optimistic note, though that¡¯s no guarantee 2023 will end that way.
A variety of factors ¡ª a sooner-than-expected reopening of China¡¯s economy, a warmer-than-normal winter in energy-strapped Europe and a sustained fall in U.S. inflation ¡ª are combining to dissipate some of the gloom that engulfed financial markets at the end of 2022 and fanning hopes the world can dodge a recession.
But with the Federal Reserve, European Central Bank and several peers still pushing ahead with higher interest rates, the risk of a slump later in the year can¡¯t be dismissed, especially if inflation proves sticky and doesn¡¯t retreat as much as central banks want.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.