Investors need to look to the Asian region for the best investment opportunities in the short and medium term, said Steve Brice, Global Chief Investment Officer at Standard Chartered Bank.
Providing his outlook for 2023, Brice said there will be a slowing of global inflation and fewer federal interest rate rises in the first half of the year, followed by a decline in the second half of the year.
Brice noted that the economic slowdown should help cool inflation significantly but cautioned that inflation will not return to 2% levels in the foreseeable future.
China the exception
The exception to this will be seen in China, which is expected to achieve high growth rates as a result of the lifting of Covid restrictions and a shift in policy focus towards stabilising growth and improving opportunities for companies, investors and consumers.
“2022 was the toughest year for investors that I have seen during my 25-year career. It is only the fourth year in a century-and-a-half that US stocks and bonds have depreciated so rapidly,” Brice told an economic briefing for over 70 clients and guests in Bahrain.
He said although China is expected to rebound, a recession in the US is inevitability due to interest rate hikes, while Europe’s recession will be precipitated by increased energy prices.
Dr Boutros Klink, CEO of Standard Chartered Bahrain and the Middle East (ex UAE), said: ‘We are delighted to have had Steve with us in Bahrain this week where he shared his expert and economic insights for this year with our valuable clients. We continuously work on making tools and information available to clients for them to make informed financial decisions. As a financial institution that has been in Bahrain for over 100 years, we are committed to continue to share our expertise with our clients and contribute to the kingdom’s economic growth and development.”-- TradeArabia News Service