We may only be part-way through 2023, but the phrase that has overwhelmingly dominated conversations – from boardrooms to political chambers and Main Streets – has been the cost-of-living crisis. In recent years, the world has faced waves of challenges, from the pandemic to the invasion of Ukraine, to the unfolding bank liquidity challenges amidst skittish depositors. The impact of such a lengthy period of uncertainty is being felt by everyone and that’s reflected in KPMG’s latest Global Economic Outlook.

The global outlook: Treading cautiously amid risks

Countries and regions in focus:

United States: A tale of two economies

Canada: Winding down to hit inflation target

Brazil: New policies could stoke inflation

Mexico: Policy headwinds make for muted growth

China: Domestic demand as the key for recovery

Japan: Recovery stifled by rising prices and global headwinds

India: Cautiously shining amid global uncertainty

Germany: Europe’s largest economy to escape recession

Austria: Mild recession, slow recovery

Switzerland: Testing the frontiers of resilience

France: Economic outlook clouded by inflationary pressures

Italy: Cautious optimism as outlook brightens

The Netherlands: Economy to remain resilient as fiscal deficit widens

Ireland: Continued growth, comes with caveats  

UK: Short-term momentum masks underlying headwinds

Central and Eastern Europe: Not a uniform story

South Africa: Lacking the power to grow

Nigeria: Challenging macroeconomic fundamentals in a transition period