by • Economic strategists predict that the economy of Europe is in a better position to outperform its US counterpart in 2023.
• Deutsche Bank’s chief investment officer (CIO) for EMEA, Zeynep Ozturk-Unlu, predicted that Europe would outperform the US in economic growth and capital markets this year.
• Ozturk-Unlu expects Europe to lead the US economy in 2023 despite the region’s peculiar set of challenges, such as the ongoing war in Ukraine, sustained energy crisis, and inflation yet to peak.
Analysts have predicted that the economy of Europe is likely to outperform its US counterpart in the year 2023. This prediction has been made by several experts, including Zeynep Ozturk-Unlu, the Chief Investment Officer (CIO) for EMEA at Deutsche Bank. According to Ozturk-Unlu, Europe is likely to experience more growth and capital market success than the US this year, with contraction and recession fears projected to be more pronounced in America than in the eurozone.
Despite facing some peculiar macroeconomic constraints such as the ongoing war in Ukraine, a sustained energy crisis, and inflation that is yet to peak, Europe is still expected to lead the US economy in 2023. Ozturk-Unlu believes that Europe has been in an expansionary fiscal policy mode for quite some time now, which could be beneficial to their economic performance this year. Although the European Central Bank is yet to reach its 2% inflation target, the optimism remains that the continent will be able to overcome its challenges and outpace the US in the coming year.
Analysts have also highlighted the fact that the US economic recovery has been more rapid and robust than Europe’s in recent years, and this could give Europe the edge in the race for economic supremacy in 2023. Furthermore, the US is also expected to face the pressures of a strong US dollar, which could diminish its economic performance, and in turn, give Europe the advantage when it comes to economic growth and capital markets this year.
In conclusion, it seems that Europe could be set to outperform the US economy in 2023, despite the region’s peculiar set of challenges. If the predictions of analysts come true, this could mean a significant shift in the global economy, with Europe taking the spotlight.
