With the year 2022 nearing to a close, we can have a look back at some of the major events that affected the stock markets this year.
Although the year began on a soft note, in February there was news of Russia beginning a special military operation against Ukraine. When Russia started invasion of Ukraine on 24 February 2022, it led to an increase in prices of several commodities including fertilizers, food products, and oil and gas.
Soon, the supply chain disruptions ensued, which besides increasing freight charges, created container shortages, and lowered the availability of warehousing space.
These developments resulted in rising inflation and compelling central banks to raise interest rates to combat it. The step had a far-reaching, chain reaction effect on many sectors, primarily real estate.
The elections in May brought many things in sharp limelight. The new Prime Minister Anthony Albanese promised to act on climate change and grab the chance to transform Australia into a renewable energy superpower.
In September 2022, Special Presidential Envoy for Climate John Kerry and Government of Australia signed a Letter of Intent between the Australian government, and nine companies – Akamai, Amazon, Cisco, Google, Iron Mountain, Lululemon, PepsiCo, Salesforce, and Unilever, to support the clean energy transition by working to procure clean energy in Australia and around the world. Seeking to unlock between $2.2-$2.8 billion in Australia’s clean energy infrastructure arising from commercial and industrial sector operations. The Australian Government is already investing more than A$1.2 billion, including A$464 million, for up to seven clean hydrogen industrial hubs.
How would all the developments of 2022 evolve in 2023. There are already talks of muted Global growth expectations due to rising inflation and interest rates. Although Global energy commodity prices have come down and supply chain delays eased, Chinese growth continues to be hampered by COVID-19 related disruptions.
2023 is likely to see emergence of renewable energy and rare earth materials sector. Rare earth materials are an integral part of modern world economy. And as it is, Australia’s potential to become a renewable energy exporter is taking a big step forward. The transition to clean energy would further spur the demand for rare earth elements.
Amidst all this, it would not be out of place to talk of currently occurring events but likely to bloom a few years from now. Trial operations of a flying car have begun. While the operators are hoping that Drone transport is going to be the real thing 5 years from now, the realistic view is it coming through in, may be a decade, considering safety, regulation and compliance it will bring along with it.
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