Geopolitical tension is increasing the risks involved with investment and trade, as well as affecting consumer demand. The prolonged conflict between Russia and Ukraine has hit global growth in terms of production, trade, and employment. Major economies are adopting tighter monetary policies to tame inflationary pressures. 

Against this backdrop, GlobalData forecasts the world economy will grow at a slower pace of 2.9% in 2022 following a 5.9% growth in 2021. It estimates the global inflation rate will rise to 8% in 2022 from 3.5% in the previous year due to the pressure on energy and raw-material prices sparked by the conflict, which has also exacerbated disruption throughout supply chains worldwide. 

GlobalData anticipates the Middle East and north Africa will be the most buoyant region in 2022, with real GDP forecast to grow by 5%. 

The research and intelligence group estimates real GDP will rise by 3.4% in both Asia-Pacific and Africa. It forecasts 2.7% growth in western Europe, an increase of 2.4% in Latin America and a rise of 2% North America. Unsurprisingly, real GDP is predicted to fall in eastern Europe, where GlobalData estimates it will decline 1.6%. 


More than four in ten employees report an increase in productivity while they’ve been working from home, according to a GlobalData survey.


The percentage of employees still working at home on a full-time basis, GlobalData research shows. Some 27% of survey respondents said they are now working at the office all week.

All major economies are expected to bounce back in 2021


Inflation and consumers

Cost inflation throughout the supply chain and disrupted trade flows continue to squeeze drinks manufacturers, many of which have sought to pass on costs in the form of higher prices. 

A number of beverage groups are looking to do so again in the coming months. However, in recent weeks, some executives have indicated inflation is starting to affect shopping habits, which manufacturers will be monitoring closely as they enter the key Christmas selling season. 

The Coca-Cola Co. CEO James Quincey said the company was starting to see trading down in water and fruit-based beverages. Some consumers, he noted, were switching to “some private label or smaller packages”. 

He added: “You can clearly see that beginning to happen in a number of places. Europe is probably the most obvious example, where, in the at-home channel, you can see some growth in private label across a number of categories. In beverages, you could see it tick up a little in water and juices.” 

Countries worldwide have reported eye-catching inflation in recent weeks, including the UK, the US, Germany and Australia.  

Some manufacturers speak of inflationary pressures moderating but remaining high and more price increases are being prepared as we enter 2023

Selected drinks companies’ Q3 results

Share this article