Reporting a “broad based and sharper-than-expected slowdown, with inflation higher than seen in several decades”, the International Monetary Fund (IMF) presented a cloudy forecast in its October 2022 World Economic Outlook. The cost of living crisis, tightening financial conditions, Russia's invasion of Ukraine and the continuing impact of the Covid-19 pandemic “weigh heavily on the outlook”, the Fund said. It forecasts global economic growth of 3.2 per cent for 2022 and 2.7 per cent in 2023, the lowest since 2001 – the global financial crisis and the most difficult stage of the pandemic aside – as well as inflation at an eye-watering 8.8 per cent for 2022. This era of uncertainty is also feeding into trouble on the equity markets, and a cryptocurrency crash, affecting the wealth of the affluent.
The economic difficulties that look set to endure for the coming months present a new challenge for the superyacht industry, which has been enjoying a remarkable boom during Covid-19. That period of burgeoning growth was always likely to come to an end sooner or later. Yet leading businesses in the sector remain confident in their outlook. Rising costs and continuing supply-chain delays are the biggest issues for many; order books thus far remain solid. Rising inflation and interest rates are likely to affect the ultra-high-net-worth (UHNW) buyers of superyachts less than most, and indeed some may look to buy now before prices soar. Dollar strength has benefited the crucial US market, and newer markets in Asia and the Middle East are coming up. Following the financial crisis