Reporting a “broad-based and sharper-thanexpected 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 costof-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 percent for 2022 and 2.7 percent in 2023, the lowest since 2001 –aside from the global financial crisis and the most difficult stage of the pandemic –as well as an 8.8 percent inflation rate for 2022. This comes on top of troubled equity markets and the cryptocurrency crash, both affecting wealth.
These foreseen economic difficulties for the months to come 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 ultrahigh-net-worth (UHNW) superyacht buyers less than most, and indeed some may look to buy now at current prices. Dollar strength has benefited the crucial US market, and newer markets in Asia and the Middle East are coming up. Following the financial crisis and the pandemic, leading builders and brokers are leaner and more tech-sawy – well-positioned to weather the latest storm