Energy Holds the Balance of Power Four energy related issues to drive 2023 Energy and its impact on the businesses, consumers, investors, policymakers, and the geopolitical landscape rose to the fore in 2022. So as we enter 2023, the future path of energy will have a major impact on global economies, central banks, corporations, and governments. We take a look at four energy related themes to set the table for our regional and country specific outlooks, including an overall outlook for energy itself in the coming year. Running on empty: what’s in store for energy markets in 2023 The macro backdrop for energy markets has weakened as global growth expectations have ebbed, but from a more micro perspective a fundamental mismatch of supply and demand remains. Listen to the podcast on Apple Podcasts or Spotify Restarting the green energy transition in 2023: the nuclear option Renewables remain an integral part of the sustainability journey, but what is the appropriate role for nuclear, one the cleanest and most efficient energy sources? We explore some of the reasons why it remains so controversial, the steps some countries have already taken and the prospect for major investments in the sector. Listen to the podcast on Apple Podcasts or Spotify Moving beyond gas-fired inflation: prices & monetary policy in 2023 Energy base effects will bring about a sizeable reduction in inflation in the major economies in 2023 but stickiness in core components (much of this stemming from tight labour markets) will prevent an early dovish policy ‘pivot’ by central banks. Listen to the podcast on Apple Podcasts or Spotify Fuelling the fire: the biggest geopolitical risks to look out for in 2023 Without question geopolitics became a major risk in 2022, and we expect that risk to rise further in 2023, and with those risks emanating from many parts of the world. A discussion with Scott Livingstone, NatWest’s International Advisor, only reinforces that view. Listen to the podcast on Apple Podcasts or Spotify For any terms used, please refer to this glossary The Year Ahead 2023 | 4