How the markets and the economy surprised investors and economists in 2023, by the numbers

By STAN CHOE and ALEX VEIGA
AP Business Writers

NEW YORK (AP) — Stocks in the U.S., Japan and Germany have risen 20% or more. The U.S. economy grew by more than 5% over the summer. Bitcoin recovered from its “crypto winter” and rose above $40,000. But for all those big numbers, one shrinking number superseded all. Inflation, the scourge of the global economy, moderated this year. It’s still relatively high in the U.S., at 3.1% in November, but it has cooled enough to get investors looking ahead to a 2024 where interest rates may be on the way down instead of up. Higher rates are having an impact, however, with the slumping U.S. housing market being the prime example.