The Year of the Rabbit
As the Year of the Tiger comes to an end, 2023 will usher in the Chinese Year of the Rabbit. And the rabbit is fourth in the twelve-year zodiac sequence relating to the Chinese calendar.
Every year is represented by a different animal, with each having its own characteristics. In Chinese culture, rabbits represent the moon. Some say it is because the shadows of the moon resemble a rabbit. Others say it is because of the rabbit’s pure characteristics.
The Chinese believe that the year in question will emulate the characteristics of the corresponding animal.
The rabbit symbolizes happiness, good fortune, and luck. The famous astrologist Dong Yilin says, “people who are born in the year of the rabbit are generally active people, very open, but also a bit conservative”. This is because the rabbit is believed to be the “luckiest” sign in the zodiac system.
Will the 2023 economic outlook emulate the lucky, happy, active traits of the rabbit?
According to the World Bank, the global economy is projected to grow by 1.7% in 2023 and 2.7% in 2024.
The sharp downturn in growth is expected to be widespread, with forecasts in 2023 revised down 95% for advanced economies and nearly 70% for emerging markets and developing economies.
The impact, although worldwide, will affect emerging and advanced economies differently.
Growth in advanced economies is projected to slow from 2.5% in 2022 to 0.5% in 2023.
So, over the past two decades, slowdowns of this scale have foreshadowed a global recession.
On the other hand, growth in emerging markets and developing economies is expected to decelerate from 3.8% in 2022 to 2.7% in 2023, reflecting significantly weaker external demand compounded by high inflation, currency depreciation, tighter financing conditions, and other domestic headwinds.
What to do?
To protect and prepare your business to weather the storm, there are a few key steps that can be taken:
- Optimize your supplier network
- Control Cost
- Forecast demand more accurately
- Manage inventory, supplier relationships, and risk more effectively
- Diversify your source country
Contact Surefire Sourcing Solutions too and let our expert team help guide and support you while you navigate these turbulent waters.
