During April:
- According to the Conference Board, global real GDP is forecasted to grow by 2.2% in 2023, down from 3.3% in 2022. Most of the weakness will be concentrated in Europe, Latin America, and the U.S.
- Asian economies are expected to drive most of global growth in 2023, as they continue to benefit from reopening dynamics and less intense inflationary pressures compared to other regions.
- Despite rapid monetary tightening, inflation is proving persistent in many major economies, particularly on the back of strength in labour markets amid significant labour shortages. Therefore, monetary policy is likely to remain restrictive throughout most of 2023, despite some financial stability concerns. Tight monetary policy will act as a break on economic activity and will likely lead to increases in unemployment rates in various economies, particularly in Europe and the U.S.
- Share market performance in both the U.S. and Australia was positive for April. The S&P 500 rose by 1.46% for April, while the Australian S&P 200 rose by 1.83%.
- In Australia, Growth and Equal Weight were the best performing styles for the month. Globally, Momentum and Low Volatility were the best performing styles. For both Australia and globally, all equity investment styles were positive during April.
- Within Fixed income markets, both Australian government bonds and credit gained ground this month. The main Australian fixed interest index, the Bloomberg AusBond Composite 0+ Years Index gained 0.5%, while the Bloomberg AusBond Credit 0+ Years Index gained 0.6%.
- Global High Yield bonds, as measured by the Bloomberg Barclays Global High Yield Total Return Index Hedged into AUD gained 0.8% for the month of April.
Read more in the Monthly Economic Wrap here.
