
Theme 1
Inflation is present everywhere, but in different forms
Volatile global prices and costs, real wage and household spending power erosion, and global central bank monetary policy tightening.
Volatile global prices and costs, real wage and household spending power erosion, and global central bank monetary policy tightening create challenges and opportunities for businesses. Inflation persistence and volatility are likely to be key features of the outlook, especially in a global environment featuring increased fragmentation.
How EY can help
Strategy consulting
EY-Parthenon professionals recognize that CEOs and business leaders are tasked with achieving maximum value for their organizations’ stakeholders in this transformative age. We challenge assumptions to design and deliver strategies that help improve profitability and long-term value.

Theme 2
Talent attraction and retention are more important than ever
Labor markets remain tight, and businesses are competing for reduced talent pools.
Labor markets remain tight, and businesses are competing for reduced talent pools. Compensation costs have also grown. A labor market rebalancing is likely coming, but relative tightness lingers for now. A competitive labor market where the value of talent has risen and labor supply is constrained by aging and reduced immigration will put emphasis on talent resilience.
How EY can help
HR transformation
The disrupted workplace presents a new opportunity for the HR function: to become a strategic partner to the CEO in influencing and executing business strategy. Are you ready for the challenge?

Theme 3
Building supply resiliency amid fragmentation and volatility
Pandemic disruptions, geopolitical tensions and increased international fragmentation brought to light global supply chain vulnerabilities.
Pandemic disruptions, geopolitical tensions and increased international fragmentation have brought to light global supply chain vulnerabilities. Suppliers are on the watch for a “bullwhip effect” following product and labor shortages as well as geopolitical tensions. The pandemic and geopolitical climate have added momentum to the “slowbalization” trend. Business leaders will increasingly have to anticipate, react to and adapt to a transforming geopolitical and domestic policy landscape.
How EY can help
Geostrategic Business Group
Political risks are creating both challenges and opportunities for global organizations, creating an imperative to develop more strategic approaches to managing political risk. The Geostrategic Business Group helps companies to do this by translating geopolitical insights into business strategy.

Theme 4
Adjusting to a higher and more volatile cost of capital
Financial market dislocations on the equity, fixed income and foreign exchange front require increased adaptability and foresight.
The cost of debt has surged to multiyear highs and is unlikely to return to pre-pandemic lows in the near term. Concurrently, a decline in valuations has led to a significant slowdown in M&A and PE activity. Additionally, amplified currency swings are being observed in developed markets with comparative stability in emerging markets. Financial market dislocations on the equity, fixed income and foreign exchange front require increased adaptability and foresight.

Theme 5
ESG and sustainability “here and now,” not “maybe later”
Comprehensive approaches to sustainability often return more customer, employee, societal and environmental value than anticipated.
Comprehensive approaches to sustainability often return more customer, employee, societal and environmental value than anticipated. Business leaders who embrace value-led sustainability can help companies unlock more value from their climate actions.
How EY can help
Sustainability and ESG strategy services
EY teams can help you create long-term sustainability and ESG value through strategy, M&A, capital allocation, ESG due diligence and portfolio optimization.
Sector considerations vary in the current global economic outlook
Dan Moody of Ernst & Young LLP contributed to this article.
Summary
In the face of an uncertain economic environment, business leaders should seek opportunities to grow. Business executives may do so by building resilience and adaptability to a new paradigm of uncertainty. It is critical for leaders to be proactive and discover how to turn potential pitfalls into new prospects.