GIC’s view of investing in a world of disruptions

THE global investment environment continued to change in fundamental ways over the last year. The Russian invasion of Ukraine has persisted, inflicting growing human and economic tolls. Together with highly expansionary macroeconomic policies in the major economies, the war also contributed to the jump in global inflation rates, ending a 40-year disinflationary trend.

To rein in inflation, major central banks embarked on aggressive interest-rate hikes. In the US, the energy transition saw a major boost following the passage of the Inflation Reduction Act.

Since late 2022, generative artificial intelligence (AI) has caught on at an unprecedented speed and scale, with its wide-ranging but uncertain impact creating optimism or pessimism, depending on where you sit. In China, the surprise decision to end its strict Covid policy raised hopes for better global growth this year.