In Asia, we forecast that consumer price inflation will average 4.5% this year—more moderate than in the UK (8.7%), the euro zone (8.1%) and the US (7.9%). Some prices will even fall in late 2022, particularly as elevated shipment costs and shortages resulted in stockpiling of unsold products.
Global demand will ease in 2023, and producers operating on thin margins will need to destock to secure their bottom lines, prioritising volume over margin. Manufacturing continuity will improve, barring any severe coronavirus disruptions or additional geopolitical flare ups, while consumers will find respite amid cooling global inflation.
Time to lock-in higher prices?
Interest rates may not skyrocket as high as markets fear. Now may be the time to lock-in higher prices if you are selling but to avoid long-term contracts for inputs. Keep an eye on considerable divergence in commodity prices, especially into 2023, not to mention wide dispersion in the growth outlooks for key G20 markets.
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Up-to-date country data and forecasts
The war in Ukraine underscores the importance of having access to reliable, consistent and up-to-date data and forecasts across different countries, regions and industries. Otherwise, it becomes impossible to generate a complete picture of what risks and opportunities lie ahead, and how best to adapt your commercial strategy.
Navigate the increasingly complex global environment
This understanding sits at the heart of our work at EIU. We provide businesses with the tools they need to have a nuanced insight into global trends, incorporating them into their daily operations. EIU Viewpoint, our new country analysis solution, gives reliable, award-winning medium and long-term forecasts, covering nearly 200 economies, six major industries and 25 commodities.
Identify opportunities and mitigate risks
Our Operational Risk and Financial Risk services enable clients to spot the next crisis before it starts (at the country, regional or global levels) and to stay well ahead of their competitors. Access China offers independent and coherent analysis to identify opportunities and risks across China’s provinces and cities. Our international team of experts are also available for bespoke briefings and strategic planning sessions.
Whether comparing different markets, designing risk scenarios or planning a new investment strategy, EIU’s services are designed to help your business prepare for the next opportunity.
To find out how EIU can help your organisation, visit our website (www.eiu.com) or get in touch with our customer services team.
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