Market Pulse Report Q1 2023 - Fitzgerald Power

Market Pulse is an expert-led, up-to-date analysis of the Irish SME sector as well as global economic activity. Check it out here.

Global economic trends

The IMF’s World Economic Update forecast that global growth will fall to 2.8% in 2023. Advanced economies are expected to see a growth slowdown from 2.7% in 2022 to 1.3% in 2023.

Rising prices

The Irish Central Bank expects inflation to average 5% in 2023, with the rate of increase in energy prices forecast to decline rapidly as the year progresses. HICP inflation is forecast to moderate to 3.2% and 2.2% in 2024 and 2025, respectively.

Irish economy

After falling by an estimated 0.8% in 2022, the Central Bank of Ireland expects average real household disposable income to increase by 2.1% and 2.3% in 2023 and 2024, respectively.

Banking crisis

Instability gripped the financial markets during the first quarter following the collapse of Silicon Valley Bank. The Swiss bank Credit Suisse was bought out by UBS after a series of scandals and a loss of confidence from investors.

Inflation

Inflation in the eurozone was 6.9% in March 2023, a decrease from 9.2% at the end of the previous quarter. Energy prices have continued to plummet with inflation at -0.9% vs 25.7% in December 2022.