- OECD expects world economy to expand by 3 per cent in 2023
- But how long can economic resilience last?
This year, like 2022, has been characterised by steep interest rate hikes. As the chart below shows, policy rates have shot up across advanced economies, taking the cost of corporate loans and mortgages with them.
A year ago, the consensus was that the higher rates, needed to get inflation under control, would come with the trade-off of lower global growth, or even a recession. But so far, this has not materialised. What’s more, economists are increasingly optimistic about the outlook for the rest of the year.