What can retailers expect from the global economy in 2023? It seems likely that during the year, the rapid rise in inflation and the surge in commodity prices will stabilize or reverse. It also looks like we’ll see less global supply chain disruption than in the previous year. However, the tight labor markets, the Russia-Ukraine conflict, and economic disruption from climate change, among others, look set to continue.
Below a high-level summary of the Economic Outlook for 2023, prepared by Chief Global Economist Dr. Ira Kalish. Download the Global Powers of Retailing 2023 report to read his full analysis.
We are already seeing fewer supply delays and shortages, and this is expected to continue in 2023, except for in China, which will normalize once the COVID-19 situation stabilizes there. Supply chain issues and geopolitical tensions have led many companies to diversify their supply chains. We expect this to continue, and this will likely mean further outflows of capital from China and more investment in other countries in Southeast Asia, India, Central Europe, and especially Mexico.
Connect with us
Dr. Ira Kalish, our Global Chief Economist, will be presenting an updated Economic Outlook at the World Retail Congress 2023 in Barcelona from 25 to 27 April. We look forward to meeting you there or connecting with you at your convenience to discuss opportunities for your business.