Welcome to your Christmas 2022 Client Newsletter.
What a year we have experienced on many fronts! After experiencing reasonable global market conditions throughout 2021, we had reason to look forward to 2022 with a degree of positivity, but, as we all now know, it did not turn out to be the case. Whilst the new strains of the Covid virus resulted in a reboot of cases reported globally, the big ticket item that shocked the world in early 2022 was Russia’s unprovoked invasion of Ukraine which, according to the OECD, will reduce global GDP by USD 2.8 trillion lower in 2023 when compared to their forecasts in December 2021. There are many costs to Russia’s war, but this gives some sense of the worldwide price of the war in terms of economic output.
Another key factor slowing global growth is the generalised tightening of monetary policy i.e. interest rates increases globally, driven by the greater-than-expected overshoot of inflation targets. Strict lockdowns associated with China’s zero COVID-19 policy have also impacted the Chinese and global economy. Shutdowns and property market weakness are slowing China’s growth to just 3.2% in 2022.
We certainly hope that you, and your family will derive some insight and useful information from the variety of articles included with this Newsletter. If you think any of these articles may be of interest/use to other family members or friends, please feel free to share with them.
From all of us at CFG, thank you for entrusting us with your advice needs and please accept our very best wishes to you and yours for a safe, happy and joyous festive season.
We look forward to catching up with you in 2023.
Kym Cotter DFP
Director
Authorised Representative - No. 235659
Cotter Financial Group Pty Ltd ABN 70 617 495 502 is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523 trading as Infocus Financial Advice