Major equity markets saw gains for the second consecutive quarter despite volatility in the financial sector which experienced a disruption due to the collapse of Silicon Valley Bank. Developed market central banks continued their rate hiking cycles in order to control persistently high inflation. While prices cooled in some regions, inflation remained relatively high. Meanwhile, economic growth showed signs of slowing in the final quarter of 2022. It is likely that the slowdown in growth will continue in 2023 as the effects of interest rate hikes materialize and ongoing headwinds, including the Russia-Ukraine war continue. China’s broad based relaxation of its zero-COVID policy led to a rebound in economic activity in the first quarter. However, it may be some time before GDP growth in the world’s second largest economy returns to pre-pandemic levels. In its January 2023 World Economic Outlook, the International Monetary Fund projected that global growth would fall from an estimated 3.4% in 2022 to 2.9% in 2023 before rising to 3.1% in 2024. Global inflation is expected to fall from 8.8% in 2022 to 6.6% in 2023 and 4.3% in 2024.