There is cause for optimism. Inflation is falling and the beginnings of a global economic recovery is expected next year. But first, companies in the UK and beyond must survive some significant challenges:
Looming profitability squeeze: While a global and UK recovery is in sight for 2025 (we expect 2025 GDP to grow by 1.5% in the UK and 2.8% globally), firms will first have to manage the deceleration in global demand. Profitability will be under pressure as companies juggle below-trend GDP growth at a time of still-high operating costs, with elevated energy prices, continuing wage growth and lingering supply-chain pressures.
Geopolitical uncertainty: Amid conflicts in Ukraine and the Middle East, the packed election…
