"2023: The Year Economic Predictions Flipped, Defying Recession and Inflation Fears"
The year 2023 was marked by significant economic events including persistent inflation, bank failures like Silicon Valley Bank, and a wave of labor strikes. Despite early recession fears, the S&P 500 approached record highs. Central banks worldwide raised interest rates to combat inflation, which cooled but remained above targets. Geopolitical tensions, particularly from the Russia-Ukraine war, reshaped global trade, with India and China benefiting. U.S.-China economic ties proved hard to untangle, especially in the semiconductor industry. Meanwhile, AI investment surged, highlighted by Microsoft's $10 billion in OpenAI, despite legal challenges. The stock market ended the year on a high note, with the future remaining uncertain.