Global economic forecast for 2023? A stormy start followed by a ray of hope

Wall Street predicts turbulent first six months but growing optimism at ebbing inflation, slowing pace of rate hikes and China's reopening

Investors should brace for another turbulent year in the financial markets, economists have warned as central banks fight inflation, China reopens its economy after Covid-19 restrictions and the Ukraine war pushes the global economy towards recession.

The first half of the new year is likely to be choppy, according to Wall Street predictions, after global markets suffered their biggest fall since the 2008 financial crisis last year.