HSBC held an investment outlook briefing for the first half of 2023 yesterday, predicting that global GDP will grow by 1.8% in 2023.

(Provided by HSBC)

[Reporter Wu Xintian/Taipei Report] HSBC held an investment outlook briefing for the first half of 2023 yesterday. HSBC predicts that the growth of global GDP in 2023 will be one.

8%, and the Fed is expected to raise interest rates for the last time in February ○.

Five percentage points (two yards), and then pause interest rate hikes, this year the federal funds rate will remain at four.

The high of 875% is unchanged.

Global GDP is estimated to grow by 1.8% this year

HSBC predicts that strong tightening policies by central banks will boost global GDP growth from 3.5% in 2022.

○%, slowing down to 1 in 2023.

8%, and the global consumer price index will grow by 8 in 2022.

4% slowing down to 6 in 2023.

six%.

Please read on...

HSBC Global Private Banking and Wealth Management Asia Chief Investment Director Fan Zhuoyun said that the peaking of US interest rates and slowing inflation are beneficial to the performance of the bond market.

She pointed out that the U.S. interest rate hike cycle is coming to an end, and the Federal Reserve is expected to raise interest rates for the last time on February 1.

Five percentage points, and then pause interest rate hikes; the federal funds rate is expected to remain at four this year.

The high point of 875% remains unchanged, and the Federal Reserve will cut interest rates in the second and third quarters of 2024 after the core inflation in the United States falls further.

Twenty-five percent.

Fan Zhuoyun said that the inflation situation in Asia is milder than that in Europe and the United States, so the central bank can maintain a more moderate monetary policy.

In the context of the global economic downturn in 2023, Asia outside Japan is expected to be the only region whose GDP will accelerate.

Five percent rose to four.

three%.

Fan Zhuoyun further stated that in the past 75 years, there have been only nine years in which stocks and bonds fell at the same time, and in the following year when both stocks and bonds fell, the market was able to recover the lost ground.

Therefore, after the sharp correction of asset prices last year, the long-term expected returns have improved significantly. When the unfavorable factors of interest rate hikes and inflation are fully absorbed by the market, the low valuation will attract funds to return to the market.

Among asset classes, bond yields have surged last year, giving them the biggest improvement in long-term expected returns relative to stocks and cash.

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