Maintaining the momentum

Several drivers will support growth

The year 2023 ended with better economic outcomes than initially anticipated. High inflation in advanced economies, particularly the US, was one of the biggest concerns at the beginning of the year. Monetary policy action to contain near double-digit inflation rates had the potential to materially tighten financial conditions, affecting global growth outcomes, creating foreign exchange financing problems in developing countries, and increasing financial market risks in general. Some of the risks did materialise, but things could have been much worse. A series of bank failures in the US, for example, did raise alarms, but was handled swiftly by the authorities.