The new year “promises to be a tougher ride for most businesses, investors and consumers globally, but there is always opportunity in volatility,” according to the Kroll Institute in its latest report, “10 Trends to Watch Heading Into 2023.” These trends are:

1. Developed markets in recession. (Countercyclical businesses should see increased deal flow.)
2. Emerging markets: buoying global growth. (But there are risks to the outlook for China.)
3. Emerging markets face a sovereign debt crisis. (Could embroil some middle- and particularly low-income countries.)
4. Volatile financial markets and market dislocations. (Earnings pressure will likely persist into much of 2023, particularly for companies more vulnerable to interest rate rises or recession.)
5. Developing global trade tensions. (Between the U.S. and China, and maybe between the U.S. and Europe.)
6. Russia war on Ukraine persists. (Possible escalation scenarios cannot be ruled out for 2023.)
7. “Old” and “tropical” infectious disease outbreaks. (The virus lingers, and others may emerge.)
8. Growth of ESG regulation, transparency, and scrutiny. (This should improve measurement issues and reduce greenwashing.)
9. Heightened regulatory environment. (The SEC will focus on imposing new rules in such areas as cybersecurity, certain private fund practices, SPACs, and more.)
10. Increased cyber and social media risks. (But this will give a boost to the cybersecurity industry.)

“Rarely has the world faced this many interconnected crises but we expect that the outlook in 2024 will be less volatile, with most of the developed world coming out of a shallow recession, inflation abating, and the green transition having made significant progress, particularly in Europe,” the report says. For more on the Kroll Institute, click here.