The ghost of the war in Europe is back. Russia’s war against Ukraine has marked the geopolitical agenda during 2022 and will continue during 2023. Could it be the conflict that started World War III? We do not know, but it is not the only conflict that can trigger it. We must be attentive to what happens between China, Taiwan and the United States. It seems that there is going to be a dispute about who will be the power in the 21st century and a military conflict is not ruled out.
Supply chains have not recovered, we can see this in the lack of new cars and auto parts.
We will have to be attentive to the energy market, they can continue to increase prices and be careful with Russia because part of its economic war against the West will be in this way. Europe is going to have a cold winter due to lack of gas.
All these events have had and will continue to have a negative impact on inflation. In addition, the world is experiencing problems in the labor markets. In China there is high unemployment among young people and in others the problems to get a well-paid job can cause social crises.
Polarization in the world is generalizing. There is a malaise about public policies and people are reacting, but not always in the best way and that is why populist governments and radical groups have emerged. Among the examples of the arrival of radical populists we have Poland, Hungary, Italy, India and in the United States there was Trump among others.
Without a doubt, 2023 will give a lot to talk about and write about, Russia and China want to take power away from the United States and are willing to take away from human beings the freedom and democracy that so many wars and blood have cost.
We are in a very complex world environment and it will surely impact Mexico. The management of the economies will be a challenge in 2023, appropriate public policies will have to be adopted, although painful in the short term, which can give benefits in the medium term.
