BBVA Research indicates that growth in 2022 has been revised upwards in practically all geographies.
BBVA Research points out that growth for 2022 has been revised upwards in practically all geographies. This represents a better starting point to start the year 2023.
Despite this, it cannot be denied that some risks persist. In the case of Spain, growth for next year would be 1.2%. In 2024 this would accelerate to 3.4%, once some of the uncertainties affecting families and companies dissipate.
BBVA Private Banking in Spain has presented its economic and market forecasts for 2023. The year has been characterized by starting “with a good forecast for investors, but in which prudence must still prevail since numerous risks persist.”
It further noted that “Experts explain that 2023 will be the year of recovery for world financial markets, despite still presenting itself as a very difficult year in terms of economic activity. Equities, by their very nature, have the potential to recover the losses accumulated in 2022 in a relatively short time, while the falls in fixed income will need more time to recover, although 2023 will be much more propitious for this asset than 2022 has been.”
Sonsoles Castillo, Chief Economist of Economic and Financial Analysis at BBVA Research, anticipated an economic slowdown for Europe, which is supposed to have a reduction in economic growth, due to the effect of the energy crisis.
In the United States, the technical recession could come a little later. It would be induced by the monetary restriction necessary to curb inflation.
Finally, in China, growth can be expected to accelerate in 2023 to 5% from 3.6% in 2022, although there are risks in the short term.
Inflation Could Continue in Europe
In relation to inflation, Rafael Doménech, head of Economic Analysis at BBVA Research, explains that it seems to have peaked in the United States. However, there are more doubts in Europe, waiting for the coming months to confirm the first signs of a decline in inflation that have begun to be observed. The better performance of the energy component explains this moderation. However, the decline in core inflation will be slower.
Importance of Investing in Trends
Experts say that, although 2022 has benefited other sectors and investment styles, investing in megatrends must maintain a relevant position. Since many of the identified trends are bound to experience great growth in the future, companies in these areas will foreseeably have a good evolution in their sales and profits.
This is especially true in the case of the metaverse. Experts explain that its development is in full swing. However, while the metaverse market is barely $100 billion today, it is projected to reach $700 billion in size by 2030.
By Audy Castaneda
