PART 1 The Economy

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PA R T 1 : T H E E CONOM Y

APAC - WHAT’S CHANGED: | Inflationary pressures are now clearly evident in the region | Supply chain stress has intensified once again | Central banks are now acting… and aggressively | Confidence is being tested | GDP growth has been revised down, but by varying degrees APAC - WHAT’S NOT CHANGED: | Asia Pacific is still less exposed to inflationary pressures than other regions | Peak inflation is still expected in Q2 – Q3 2022 for most markets | Most labour markets remain tight | Consumers are still spending | Asia Pacific exports remain strong

APAC – WHAT TO WATCH | Trajectory of business and consumer confidence | Stabilisation in fuel pricing | China’s near-term economic data as Shanghai reopens | Demand for regional exports

4 | C U S HMA N & WA K E F I E L D

C U S HMA N & WA K E F I E L D | 5