Another significant determinant of 2023’s economic feed-through in areas ranging from digitisation, picture will be China. There are tentative signs that national security and the focus on self-reliance to strict anti-Covid measures will be relaxed (though the opening up of capital markets, while keeping a slower than expected), which would be positive for close eye on the tense US-China relationship. economic growth, and we expect monetary and What does all this mean for investors? While fiscal policy to stay loose (and be loosened further), the macroeconomic outlook for 2023 makes for putting a floor under economic developments disconcerting reading, it is important to remember which have been under severe pressure. that markets rarely follow economics in straight Uncertainty about the future of renminbi price lines and the appearance of ‘value’ across asset trends persists; we believe the PBoC is willing to classes (especially in fixed income and some parts accept some depreciation to support export growth of equity markets) will be an important trend to especially given relatively low inflation. In the assess alongside macro developments. wake of the 20th Communist Party Congress, we will be watching closely to see the potential policy Federal Reserve Board Chairman Jerome Powell. Credit: Brendan Smialoswki / Contributor, Getty Images. 8 Investment Outlook Fidelity International