In the second half of 2022, the economy slowed significantly, as the economic effects of higher inflation began to take hold, limiting households' purchasing power and business sentiment. We expect the two distinct halves of last year to be reversed in 2023.
As inflation moderates over the course of the year, we expect a pick-up in real household  1/4  BIS - Central bankers' speeches  disposable income, gradually restoring consumers' purchasing power and supporting domestic economic activity. Our latest forecast is for MDD growth of 3.1 per cent this year, 2.9 per cent in 2024 and 2.6 per cent in 2025.