But perhaps even more worrisome is wage inflation, especially in the service sector.
“The truth is that once wage inflation gets into the system it starts to get a little sticky. It’s not easy to dial down,” Gupta said.
“Everyone I talk to expects much higher wages in 2023…and I fear this will take hold in the system.”
In the 15-minute interview, Gupta also touched on tensions between superpowers the United States and China, noting that the economic reality is that “China and the West are very much integrated.”
“China is the largest trading partner to some 70 countries in the world, and whatever the external rhetoric, basic trade continues,” he added.
“My hope is that the economy will eventually win over politics, but I have to admit that is a concern.”
China’s fierce competition with the United States for technological supremacy is also a concern, even as future technology trends such as artificial intelligence, blockchain, and virtual reality emerge.
“Frankly, investments in these areas are going to be very important, so all countries, not just the US and China, continue to double down on the nature of their investments,” Gupta said. .
https://www.channelnewsasia.com/business/inflation-outlook-us-fed-rate-hike-energy-crisis-dbs-chief-piyush-gupta-3030451 Inflation outlook stable despite pressure from global energy crisis, wage demand: DBS chief