The January job report has brought positive news for the economy, with a staggering 500,000 new jobs created and unemployment at levels not seen since the 60s. This suggests that the economy may not be cooling off as quickly as feared following interest rate hikes.
As the global economy slows, some regions are performing better than expected, with a reduction in energy prices, slowing inflation and the decline of COVID as an economic burden. Europe has seen a significant improvement, with the collapse of European natural gas prices removing a major headwind to the Eurozone’s economy. China, on the other hand, has lifted its zero-COVID policy, leading to a surge in consumer spending and a faster-than-anticipated economic rebound.
While China’s rebound may not reach the level of “revenge spending” seen in the US, other major emerging markets such as Brazil, India, Mexico and Indonesia are showing steady progress. Meanwhile, concerns over food insecurity are diminishing, with a lack of significant differences between emerging and developed markets.
