H1’23 has seen the negative spillover effects from 2022 continue to hamper economic recovery with the further weakening of macro factors consequently leading higher domestic interest rates, heightened geopolitical tensions and slower global economic growth. Globally, inflation in advanced economies continued to ease during the year driven by reduced prices for basket of commodities components, easing of supply chain costs, and a decrease in commodity prices especially crude oil prices. However, core inflation has remained sticky on the higher side showing increased pressure on non-fuel non-food items. Consensus expectations have cut back on recessionary fears with expectations shifting to minor contractions in the coming quarters.
