Russia’s invasion of Ukraine has permeated across many of our global themes. The high inflation environment and subsequent cost of living crisis and rising interest rate environment in many markets has had knock-on-effects for other trends we expected to see play out. In general, while we have seen a waning economic impact from Covid-19, the Russia-Ukraine crisis has prevented full economic normalisation globally, impacting growth across several industries.
In some sectors, ESG and sustainability trends have taken a backseat as focus shifts to cost reduction and food security, and the price of the green transition has increased as a result of high commodity prices. Elsewhere, investment into digital technologies has slowed in some sectors as companies face higher cost of capital.
In the political sphere, Mainland China-US tensions have stabilised as US diplomatic focus shifts to the Russia-Ukraine crisis, meaning that industry flashpoints have been minimal so far in the year.
Get a mid-year update on the 6 Global Industry Key Themes for 2022 that we outlined at the beginning of the year:
- Post-Covid Industry Normalisation
- US-China Industry Tensions
- Elevated Input Prices
- Supply Chain Adjustments
- Digital Transformation