Nordea Economic Outlook: The Balancing Act
Global growth is weak at the moment. However, there are signs that the year 2023 could also cause positive surprises as mild weather has eased the energy crisis in Europe and China will rebound after the end of the tight covid policy. Although inflation seems to have peaked, it is still an open question how much further monetary policy tightening is needed to lower it substantially. The central banks are thus facing a delicate balancing act, with many years of ultra-accommodative monetary policy suddenly being turned upside down, says Helge Pedersen, Nordea Group Chief Economist. This