# Country and Sector Risk Barometer Q3 2023: Macroeconomics put to the test by microeconomic deterioration

- Link: https://www.thailand-business-news.com/thailand-prnews/country-and-sector-risk-barometer-q3-2023-macroeconomics-put-to-the-test-by-microeconomic-deterioration
- Published: 2023-10-28T20:22:57+07:00
- Author: Thailand PR News

**The start of 2023 had good news, but hints of a less promising end emerged. Inflation,
economic slowdown, and geopolitical changes create uncertainty.**

## Macroeconomic Challenges Ahead

The start of 2023 brought some good news, but the outlook for the rest of the year
is less promising. Inflation remains a concern, with central banks struggling to
meet their targets. Additionally, the recent attacks in Israel have disrupted the
oil market, further adding to the volatility. Leading indicators suggest a slowdown
in North America and the Eurozone towards the end of the year, while China’s economy
continues to face challenges and lack confidence among households and businesses.
Despite some stability in expectations, the overall environment remains highly uncertain
and volatile.

## Towards a Multipolar World

Recent geopolitical events have further upset the global landscape. The expansion
of the BRICS group to include six new members, which some believe will challenge
the predominance of the G7, may not lead to a significant alternative vision. The
objectives of BRICS+ are not aligned, and tensions between China and India limit
their ability to compete with the G7. While the geopolitical order may be evolving,
the impact of this shift remains limited in the short term.

## Inflation and China’s Recovery

Inflation has continued to recede in recent months, but signs of its persistence
remain. Core inflation has been slow to decline in advanced economies, and there
are concerns about a resurgence of inflationary pressures towards the end of the
year, especially with rising oil prices. China’s post-Covid recovery has been disappointing,
with weak economic data for domestic demand and exports. Consumption has been cautious,
and investment has been limited due to concerns in the real estate market.

## Industry-Specific Changes

In Western Europe, the energy sector is experiencing higher margins for hydrocarbon
producers and refiners, leading to upgrades in the sector’s risk assessments. The
agri-food sector in the region is also showing positive momentum. However, the paper
sector has seen the highest number of downgrades. Overall, there are mounting social
and political risks globally, with deteriorating living conditions contributing 
to growing frustration.

Source: Country and Sector Risk Barometer Q3 2023: Macroeconomics put to the test
by microeconomic deterioration / News / News & Publications.

**Source** : [Country and Sector Risk Barometer Q3 2023: Macroeconomics put to the test by microeconomic deterioration](https://thailandbusinessnews.net/companies/country-and-sector-risk-barometer-q3-2023-macroeconomics-put-to-the-test-by-microeconomic-deterioration/?rand=93848)