• The United States (US) economy grew by an annualized 1.1% in the first quarter of 2023
  
• In the euro zone, inflation hardened in April
• Globally, energy prices rose 5.7% on-month
  

Global economic activity has remained resilient so far, but signs of slowing activity are appearing. The US economy grew by an annualized 1.1% in the first quarter of 2023, slowing compared with the previous quarter (2.6%). The United Kingdom (UK) economy grew at 0.1% on-quarter in the first quarter, but the latest data for March shows that its gross domestic product (GDP) contracted 0.3% on-month. At the same time, manufacturing activity in China contracted for the first time since the country reopened after ending its zero-Covid policy.

Inflation hardened in the euro zone in April, while it eased only marginally in the US. Inflation remains high in several key economies prompting central banks to continue with rate hikes. The US Federal Reserve (Fed), Bank of England and European Central Bank (ECB) all hiked interest rates at their May policy meetings.