The year 2023 brought with it predictions of a hopeful economic record after a year of turmoil, especially among other world economies;

So economists, pundits, and ordinary people alike reveal some important predictions for what the new year may hold for global markets.

Here are some of the most important questions and most prominent expectations.

Will there be a recession?

In a report published by The Week magazine, writer Justin Klawans said that the one question that seems to be on everyone's mind when it comes to the economy is: Will there be a global recession in 2023?

The report stated that it is not a matter of whether there will be a recession, but rather when the recession will happen, especially due to the economic crisis looming in Europe;

He believes that avoiding a recession is possible but highly unlikely, adding that any measures to try to stop the recession are likely to exacerbate inflation.

However, others, including major banking giants such as Goldman Sachs, feel that the United States, in particular, will be able to avoid a downturn, with only 35% of their analysts believing that the new year will be a recession.

Will inflation worsen?

Besides the potential looming recession, the other economic issue on everyone's mind is worsening inflation, which is unlikely to abate anytime soon.

The European Union is still trying to overcome last year's wounds. Germany experienced inflation rates of 7.9% in 2022, the highest rate recorded in that country in 70 years.

The situation was not much better in the United States;

Despite evidence that relief from high prices is possible, inflation still hit a 4-decade high last summer, and people seem a bit pessimistic on that front.

The writer pointed out that a survey conducted by the "Ipsos" Foundation on 24 thousand adults, in many countries (the United States, Canada, Ireland, "Israel", Malaysia, South Africa, Turkey), found that 75% of those surveyed felt that inflation would be worse in 2023 than in 2022.

How much will the cost of living rise around the world?

The writer believes that the cost of living has been increasing for years, but the question is whether things will change in 2023, indicating that 79% of the participants in the "Ipsos" survey believe that prices in their countries will continue to rise faster than people's income, and that 68% of the respondents also felt that unemployment will be higher in 2023 than it was in 2022.

In the US, there was some sign until last year that costs could continue to rise into the new year. Last summer, officials announced that Social Security benefits would have to be adjusted to make up for the expected cost-of-living difference, with seniors potentially getting a wage increase of up to 9%.

However, rising global inflation may mean that these increases may be short-lived for many people - as Forbes reported - especially given that price hikes often disproportionately affect the elderly.

What is the probability of a stock market crash in 2023?

The last major collapse of the stock market was preceded by the great recession in 2008, and given the state of chaos in the global economy, some analysts believe that there is a strong possibility of a similar collapse in stocks in 2023, in this regard;

Financial forecasters at JPMorgan Chase expect the S&P 500 to drop as much as 14% in the first quarter of 2023 due to continued rising costs, rising unemployment, and a general downturn in the economy. .

How high can mortgage rates be increased?

Mortgage rates have doubled since the beginning of 2022, and then it can be believed that rates will continue to rise as the housing crisis continues, so the report recommends that it may be better to wait until 2024 to obtain a loan.

On the other hand, others are still more pessimistic, as economists believe that the mortgage rate in America is likely to continue to rise throughout 2023, warning of "significant fluctuations" in the housing market in the near future.