2022 has arguably been one of the most challenging years the world has experienced in modern times. It’s hard to downplay the scale of the geopolitical and economic uncertainty facing every one of us – from individual households to governments and business leaders.
We entered the year with a degree of cautious optimism as Covid restrictions were gradually eased, but what followed was a series of challenges that have tested the resilience of even the most robust, sustainable companies.
Economic modelling and forecasting is a notoriously challenging task,especially in a time of great uncertainty, but taking a step back and looking at the bigger picture is essential. KPMG’s Global Economic Outlook brings together teams of experts from across the world. Our aim? To dig deeper into past trends, challenges and opportunities and explore how we believe the actions that are taken today may impact on economic output over the coming weeks, months and years.
The international outlook is patchy. Some countries, regions and territories achieved a strong post-pandemic rebound, for others – chronic political and economic challenges dampened hopes of regaining lost ground. It’s a similar story across all areas of analysis – with different outlooks and outcomes in different areas. That said, there are several universally consistent themes and stories. The rapid return to economic activity after Covid created supply chain challenges which appear to be easing slightly but continue to drag down growth projections.
Combined with the devastating war in Ukraine, C-suites are grappling with shortages in everything from oil and gas to wheat and microchips. This has had a significant impact on both inflation and recessionary fears.
In my previous role with KPMG, I led the global organization’s Energy & Natural Resources practice – supporting member firm clients in an industry that has become used to experiencing profound highs and lows. I now work with CEOs across all sectors as Global Head of Clients & Markets and much of what I witnessed in the energy world is applicable today across all businesses. KPMG’s Global Economic Outlook is not an exact science, but in a time of great unease, I believe it is an invaluable asset, helping to map out some of the challenges and opportunities ahead and enable corporate leaders to plan for the future and prepare for an eventual return to sustainable, long-term growth.
Regina Mayor, Global Head of Clients & Markets KPMG