Macroeconomic update for May 2023

While global economic growth may be slowing down, emerging-market (EM) economies – especially China – provide investors with a bright spot. Since the country’s post-pandemic reopening, retail sales have pointed to strong consumption and a better-than-expected GDP figure for the first quarter delighted investors.

Even as we expect the US to head into a recession and plenty of other risks ahead as well, declining inflation and the likelihood of the US Federal Reserve’s rate-hike journey coming to an end soon leads us to believe that it’s a good time to start building portfolio exposure.