Inflation and cost of living crisis bears down globally
According to the IMF, global economic activity is experiencing sharper-than-expected slowdown, with inflation higher than seen in several decades. The cost-of-living crisis, tightening financial conditions in most regions, Russia’s invasion of Ukraine, and the lingering COVID-19 pandemic all weigh heavily on the outlook. Global growth is forecast to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic.
Global inflation is forecast to rise from 4.7 percent in 2021 to 8.8 percent in 2022 but to decline to 6.5 percent in 2023 and to 4.1 percent by 2024. Monetary policy should stay the course to restore price stability, and fiscal policy should aim to alleviate the cost-of-living pressures while maintaining a sufficiently tight stance aligned with monetary policy. Structural reforms can further support the fight against inflation by improving productivity and easing supply constraints, while multilateral cooperation is necessary for fast-tracking the green energy transition and preventing fragmentation.
In this issue, read RSM CEO Jean Stephens’ Thought Leadership piece on career development and how her own journey of learning has been shaped; AAT’s Head of Business Development Rob Alder tells us about courses for upskilling accountants to help clients navigate financial uncertainty; there is a Q&A with ‘young disruptors’ Phil Burnell, Managing Director of Spark, and Steve Tanner, Director of Leap; Ozgur Demirdoven, EVP of Global Commerce at Allinial Global, highlights successful cross border synergies achieved by two member firms in the APAC & LATAM regions; Onapsis’ CTO delves into cyber-breach incidences from around the world and offers advice to combat disruption; PrimeGlobal CEO Stephen Heathcote speaks to firms who are positively embracing the challenge of hybrid working; and PracticeWeb unveils survey results showing the biggest issues impacting day-to-day operations for SME owners, highlighting the challenge of ‘Making Tax Digital’.
Also included in this issue are Ranking Reports and tables for France and Germany and further tables for Italy.
Zoya Malik
Editor-in-Chief