2023 is now in full swing and has people looking ahead to the next 12 months with all the optimism a new year delivers. This can also be a great time to look back on the last 12 months and reflect on what they delivered. With this in mind, it is fair to say that 2022 was an eventful year economically on a global scale.
As a result of this, many countries (such as the US and UK) struggled somewhat last year due to a number of reasons. The ongoing Russian-Ukrainian war was certainly a factor and led to rising energy and food prices globally, due to the effect it had on their supply.
Rising inflation also key in 2022
The other big financial story in 2022 was high inflation. This was something that was experienced worldwide and led to national currencies becoming weaker. It also hit consumer spending, as the prices of goods and services rose. High inflation levels were also something investors had to take note of, and looking into what causes inflation is useful if you trade in stocks, FX or bonds. This is because knowing about the drivers behind inflation as we move into 2023 can lead to better trading decisions.
Although high inflation and the ongoing war in the Ukraine might have left many countries struggling last year, some nations around the world are looking forward to an economic boom in 2023. But which countries might these be?
Guyana
While the latest travel news is usually taken up by major nations like the US, the UK or Canada, Guyana could be a destination you have heard of before. Located on South America’s North Atlantic coast, its inclusion here might still surprise a few people, though. Despite this, the simple truth is that this country is predicted to see major growth in 2023.
The main reason for this is a spike in oil production that the country has seen since 2019. It produced almost no oil before then but was producing more than 100,000 barrels per day by 2021. With production levels expected to rise during 2023, you can imagine the wealth, jobs and economic prosperity it could deliver in the coming year. It should also give the government of Guyana extra cash to put into public spending.
2023 should also be a great year for Guyana’s economy due to the oil discoveries still being made there – with the last being as recent as October 2022! This means they have plenty of in-demand oil to extract and sell on the world market going forward.
Libya
Although the global financial outlook for regions such as Europe is not great for 2023, other parts of the world are set to fare better. Africa is one and Libya is perhaps THE country here that stands out.
As with Guyana, much of the economic boom in 2023 will be driven by oil production and persistently elevated crude oil prices. Although the world is transitioning away from fossil fuels in many areas, the demand for oil in the coming year should remain strong and allow Libya to thrive.
Many people also expect the political tensions in the country to be resolved this year and a much more stable picture should emerge. This could be great news for Libya’s tourist sector and see more visitors bring extra wealth into its economy overall.
India
For a long time, China has been the largest and most dominant Asian economy on a global scale. In 2023, though, India is predicted to see an economic boom that could challenge this. This, after all, is a country that is set for economic growth of around 6.1% in the coming year and has a stable stock market to rely on.
Another reason for the expected growth in India’s economy during 2023 is the focus it puts on its domestic market. With only 13% of the country’s GDP taken up by exports, much of the products produced stay in the country and local people buy them. When you also add in higher wages in the last few years helping consumer spending, and a government that champions greater production levels, it is easy to see why this Asian powerhouse is set to shine.
2023 could see some economies boom
After the economic impact 2022 brought to many countries globally, and the gloomy outlook for some regions on the planet in the coming year, you could be forgiven for thinking all countries are looking at financial strife in 2023. This is not actually true when you dig a bit deeper, and there are some countries that should grow their economies in the next 12 months.