The International Monetary Fund projects global growth to fall from 3.4% in 2022 to 2.9% in 2023, and then rise to 3.1% in 2024. Inflation is peaking amid low growth. 

Key notes

Worldwide inflation would decline to 6.6% in 2023 and 4.3% in 2024, from 8.8% in 2022, due to reduced commodity prices and rate hikes decreasing demand.

Meanwhile, we have just seen some promising numbers court of the world's second-largest economy, China:

China's Non-Manufacturing and Manufacturing PMIs have been released as follows: 

• Manufacturing 50.1 vs. expected 49.8 vs prior 47.
• Services 54.4 vs, expect 52.0 and prior 41.6
• Composite 52.9 vs. porior 42.6.

Market implications

The bulls will be cheering the sentiment, but much more will depend on this week's central bank meetings with the Federal Reserve, Bank of England and the European Central Bank deciding on interest rates followed by the governors speaking to the press. Corporate earnings are also due this week from the tech giants on Wall Street. Markets will also grapple with a host of US economic data, culminating in Friday's Nonfarm Payrolls report for January.