Read the CBI’s latest economic assessment, as well as key anecdotes from members.
17 Mar 2022, 3 min read
The shockwaves from the tragic events in Ukraine continue to reverberate around the global economy. Several weeks on from the invasion, markets have retreated from their recent highs, but uncertainty remains elevated. What is clear is that rising costs for energy and other commodities will add to inflationary pressure in the UK and elsewhere in the months ahead, squeezing household incomes. Disruption to trade in key raw materials has the potential to exacerbate existing bottlenecks in global supply chains.
The conflict has also triggered a profound shift in geo-political priorities which will have significant economic implications for the medium term:
- Moves by the US, UK, EU and other countries have been made to scale back imports of energy from Russia, placing energy security at the top of political agendas and accelerating commitments to energy diversification
- Military spending across Europe is set to rise
- European countries are likely to have to absorb millions of refugees in the coming
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