What is clear is that a sound consumer and data protection framework is essential, especially for vulnerable consumers with limited resources to absorb losses. Questions of data privacy amidst the explosion of cybercrime are of particular concern. Questions about ownership and control of the vast data that is generated through the digital financial services also need urgent attention.
Some market segments are still pricing in rapidly declining inflation and a mild growth slowdown, an assessment which could turn out to be too benign. In addition, investors do not expect the growth slowdown to significantly challenge corporate solvency or profitability. Over the next 12 months, corporate earnings are still expected to grow, while speculative-grade default rates are forecasted to pick up only slightly.