(Yicai Global) Dec. 1 -- The Asian economy could log growth of 4.4 percent next year, after undergoing a turning point in the second quarter, according to a recent report by Swiss banking giant UBS’ global wealth management advisory division.

As inflationary pressure gradually eases, the US Federal Reserve’s hiking of interest rates should peak in the first quarter of 2023 and Asia’s gross domestic product is predicted to pick up in the second quarter after a slow start to the year, according to the Year Ahead 2023 report released by UBS Global Wealth Management’s chief investment office yesterday.

2022 has been one of the most challenging years in the history of the global financial markets, said Hu Yifan, regional chief investment officer and head of macroeconomics for Asia-Pacific at Zurich-based UBS Global Wealth Management. Looking ahead to 2023, the investment environment will become more favorable as inflation slows and investors can start to expect lower interest rates and an uptick in growth.

The turning point for the world’s economy will probably occur in the second half next year, Hu said. Economic growth in the US and the Eurozone is likely to slow to around 0.2 percent, and that of the UK could even fall into negative territory, but China’s economy, which has tail risks under control, is expected to enact a V-shaped recovery, where the economy bounces back quickly, which will spur year-round GDP growth back to around 5 percent, she said.

The generally low valuations of Asian nations’ markets will provide investors with the opportunity to position themselves in local major asset categories next year, although geopolitics and security risks might from time to time shake the economy, said Tan Min-Lan, head of the Asia Pacific investment office at UBS Global Wealth Management’s chief investment office.

2023 will hopefully be the year of a turnaround, said UBS. Investors who are adopting risk-dodging measures now need to make plans for when things get back to normal.

Editor: Kim Taylor