![]() You could tell things were about to go badly wrong when Bloomberg and Reuters were summarily banned from access to proceedings at last week’s meeting in Vienna. The Organisation of the Petroleum Exporting Countries (OPEC), which has always had Saudi Arabia as its de facto leader, has long since lost much of its discipline, power, and influence – and judging by the events of last weekend is these days pretty much a busted flush. With the merest flick of the eyebrow he could send the oil price either soaring or plummeting, and with it the fortunes of the West’s advanced economies. People would hang on Sheikh Yamani’s every word as if the legendary Saudi oil minister were some kind of Pythia, the Oracle of Delphi. Nevertheless, there is always opportunity for businesses and their leaders who can chart a path forward with resilience and adaptability.Time was when Saudi Arabia was so powerful that it could command the future, or at least the future of the world economy. Year 2023 is expected to be tough year for most markets, investors and consumers. ![]() Volatile financial markets, growing trade tensions, stricter regulatory environment and pressure to mainstream climate change into economic decisions will compound the complexity of challenges faced. Fears of new COVID outbreaks and China's already uncertain post-pandemic path poses a real risk of the world experiencing more acute supply chain pain and manufacturing disruptions this year. With slower growth and high inflation, developed markets seem primed to enter into a recession. Lower capital expenditure is in the offing as companies go slow on investments, held back by inflation worries and weaker demand. As governments combat inflation by raising interest rates, new job creation will slowdown and impact economic activity and growth. Higher retail inflation will impact consumer confidence and spending. Food and fuel inflation will remain a persistent economic problem. The uncertainty around how Russia`s war on Ukraine will play out this year and the war`s role in creating global instability means that the trouble on the inflation front is not over yet. Looking Ahead to 2023The global economy is at a critical crossroads with a number of interlocking challenges and crises running in parallel. ![]() Access to digital archives and Research Platform. ![]()
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