Budget 2023

Turbulent times: What’s in store for the world economy this winter

Russia’s invasion of Ukraine, an increasingly volatile energy situation and contradictory fiscal indicators mean it’s little wonder forecasters are at a loss

Grafton Street in Dublin: no matter how much underlying strength there may be in Ireland, a global slump will clobber this highly globalised economy. Picture: Getty

Labour shortages abound, but real incomes are contracting. Business confidence is down, while companies’ capital investment is holding up. Central bankers are hitting the interest rate brake, despite feverish talk of global recession. Governments are hitting the fiscal accelerator, despite the risks of fuelling already high inflation.

Welcome to the topsy-turvy world of economics in 2022.

Ireland, Europe and much of the world are not just experiencing a great deal of turbulence, they face a ...