2023: A year of recovery and optimism

THE year 2023 will probably be remembered for its high interest rates, as the United States Federal Reserve fought to curb inflation.

Not only was the Fed successful, but it also managed to engineer a soft landing despite high commodity prices and the outbreak of war in Gaza in the fourth quarter of the year.

The global economy remained mostly stable, although manufacturing indicators began to turn south in the second half of the year. Travel and tourism made up for this dip, particularly with China’s progressive re-opening of its borders.

The Straits Times Index (STI) underperformed against major global stock benchmarks on a dividend-inclusive total return basis. In US dollar terms, the index was up 5.5 per cent year on year. In comparison, the MSCI World Index was up 24.8 per cent on a dividend-inclusive basis.