Global economic activity may face some headwinds this year as central banks around the world continue to tighten monetary policy in response to higher inflation. However, banks can chart their own path and stay ahead of the curve by creating new sources of value in the areas of financial technology, sustainable and green financing, digital transformation, and workforce optimization. Another important factor that could expedite economic recovery will be China’s ability to bounce back from the supply chain and covid-19 related disruptions. A rapid economic recovery in China could have a positive impact on global economies.

Closer to home, in the Middle East and North Africa (MENA), the macro-outlook is warmer. The World Bank’s latest MENA Economic Update estimates that the region’s economies will grow by 5.5% in 2022 — the fastest rate since 2016. It is worth noting, however, that the economic recovery may be uneven in MENA as regional averages mask broad differences between countries. As 2023 unfolds, MENA oil producers may continue to benefit from elevated energy prices, along with higher vaccination rates for COVID-19.

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