Shoppers in the Toronto Eaton Centre on Black Friday in Toronto, Ontario, Canada, on Friday, Nov. 25. 2022. Photographer: Cole Burston/Bloomberg
Shoppers in the Toronto Eaton Centre on Black Friday in Toronto, Ontario, Canada, on Friday, Nov. 25. 2022. Photographer: Cole Burston/Bloomberg

Stagflation will rule 2023, keeping stocks in peril

All eyes are on the Fed moving into 2023 with growth likely to be hampered further as rates remain higher for longer.
Published on

By Farah Elbahrawy and Heather Burke

(Bloomberg) — Stagflation is the key risk for the global economy in 2023, according to investors who said hopes of a rally in markets are premature following this year's brutal selloff.

Almost half of the 388 respondents to the latest MLIV Pulse survey said a scenario where growth continues to slow while inflation remains elevated will dominate globally next year. The second most likely outcome is deflationary recession, while an economic recovery with high inflation is seen as least probable.

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