Inflation is unrelenting and a recession is highly likely in 2023
Chances of a soft landing are slim — The new year is here. Welcome to 2023. But is it really going to be “happy” new year? The question facing the financial markets is this: does the world economy need to go into recession to get inflation under control? If the inflation numbers were to miraculously come down in the target range of around 2% (typical target range in most of developed world) in the next few months, the central banks around the world won’t need to plunge their economies into a recession, a slim reality but a possibility nonetheless.