ISA Economic Data Release: 13 February 2023

Highlights From the Past Week

- The economy of the United Kingdom continued to deteriorate, with economic growth falling to just 0.4% on a year-on-year basis in the fourth quarter of last year. Much of this slowdown was due to a sharp fall in exports and manufacturing in the fourth quarter. This was partially offset by increases in government spending and fixed investment.

- In 2022, the United States’ trade deficit rose to a record-high of $948 billion, or 3.7% of US GDP, up from the $845 billion trade deficit recorded in 2021. The US continued to run a major trade deficit in terms of goods, while it still recorded a large surplus in services. Exports of goods from the United States rose by 17.7% in 2022.

- For the second consecutive year, Canada recorded a trade surplus in terms of its trading of goods, with exports from Canada rising by 22.1% in 2022, and imports increasing by 19.8%.

- The Malaysian economy expanded by 7.0% on a year-on-year basis in the fourth quarter of last year, beating expectations. Consumer spending and fixed investment growth remained strong in the fourth quarter. Exports also expanded at a healthy pace, despite a slowdown in the final months of last year. For the entire year in 2022, the Malaysian economy expanded by 8.7%.

- The South African government declared a “state of disaster” due to that country’s worsening power shortages, highlighting the threat of power shortages in much of the developing world, both now and in the future.

 

A Look Ahead

- The economic news from the fourth quarter of last year continues to surprise on the upside and this has led to rising hopes that the economic slowdown forecast for 2023 will not be as severe as had been feared.