ISA Economic Data Release: 3rd of March 2023

Highlights From the Past Week

India’s economy expanded by 4.4% on a year-on-year basis in the fourth quarter of 2022, a slightly worse result than had been expected. Rising interest rates resulted in a sharp decline in consumer spending. Meanwhile, government spending in India declined in late 2022.

Economic growth in Canada slowed to just 2.1% on a year-on-year basis in the fourth quarter of last year. On a quarter-on-quarter basis, the Canadian economy failed to record any growth during that period. A sharp fall in inventories and a weaker housing market were the main reasons for this disappointing result.

The Australian economy expanded by 2.7% on a year-on-year basis (0.5% quarter-on-quarter) in the fourth quarter of 2022. Growth was held down by sluggish consumer spending and a decline in private investment. For the year in 2022, the Australian economy expanded by 2.7%, down from the 5.9% growth recorded in 2021.

Turkey’s economy expanded by 3.5% on a year-on-year basis in the fourth quarter of last year, in line with our forecasts. Much of this growth was the result of major increases in consumer and government spending in late 2022. For the year in 2022, the Turkish economy expanded by 5.6%.

A Look Ahead

After sharp declines in inflationary pressures in previous months, a number of countries have reported inflation rates that are not falling as fast as they had been earlier, due largely to higher energy prices.

Many major economies are facing the prospect of falling into a recession in the first half of this year, with initial indicators suggesting that Q1 2023 GDP growth results are now likely to be disappointing.