The macroeconomic problems remain the same. Policy dilemmas have not changed, but the situation is rapidly deteriorating, and the outcomes remain uncertain.
The new administration is moving very quickly to establish a new policy regime that addresses the main obstacles that have been affecting investing and growth.
The economy grew 5.2% in 2022, mostly driven by 2021’s statistical carryover. Investment displayed the highest growth rate (10.9% y/y), followed by private consumption (9.4%).
International inflation remains high but with a slowing trend. In the US, the behavior of high inflation is more persistent than initially expected and is far from the target.
