Global inflationary pressures are predicted to moderate further over 2023 and 2024. Slower economic growth, stricter monetary policies of the central banks and supply chain improvements contribute to the price stabilisation. However, there are divergent inflation trends in the largest economies due to differences in the economic performance, labour and energy markets.
China’s post-pandemic economic recovery is slowing, following declining demand for the country’s exports and sluggish growth of domestic consumption. Ongoing real estate market problems spark concerns over the stability of China’s financial system, risking a deeper downturn for the Chinese economy. Weakening growth and rising risks in the world’s second largest economy can have significant impacts on the global economy, with important implications for global businesses and consumers. Euromonitor International answers the most frequently-asked questions around China’s economic challenges.
Supply chain optimisation is one of the key trends in the manufacturing sector that will shape the global manufacturing landscape over the next decade. Increased economic uncertainty, rising geopolitical tensions, the need to improve operational efficiency and still prevalent transportation bottlenecks drive the need to improve supply chain resilience to better withstand future shocks.
Both Russia and Ukraine are important suppliers of commodities, agricultural goods and manufactured goods to the global economy. Russia’s invasion of Ukraine and economic sanctions will have a negative impact on supply chains and are likely to impact a wide array of industries, ranging from food products to hi-tech goods. In addition, the invasion adds more pressure to global logistics and the transportation network.
Two years into the pandemic, and businesses entering 2022 are having to face ongoing uncertainties and risks. Although the global economy saw a strong rebound in 2021, supported by vaccination campaigns and stimulus spending, the pandemic’s effects still linger. Euromonitor International has identified three key challenges: Omicron, supply chain bottlenecks and inflation.
Global manufacturing output has recovered from the initial shock of the Coronarvirus pandemic, although supply chain disruption and rising prices continue to weigh on companies. Moreover, transportation problems are expected to extend well into 2022. To avoid future risks, manufacturers are investing in digital tools.