Russia Invades Ukraine, Sanctions, Energy Crisis, Inflation and COVID – Markets Surprisingly Stable!

In the December edition of Industry Watch, the focus was on COVID, and the emergence of a new variant that was a major blow to the anticipated return to relative normality.

Fears of a virulent resurgence did not come to pass, but whilst that return to relative normality is now happening in many parts of the world, a new threat has emerged in the form of Russia’s invasion of Ukraine.

The impact on Ukraine itself is catastrophic, and threatens to escalate and/or spill over into neighbouring countries. In economic terms, the invasion has exacerbated existing shortages, not least of fuel, in turn altering the geo-political landscape as countries rush to reduce their dependence on Russian gas and oil.

The immediate outcome for most countries is higher than COVID-predicted inflation and slower than previously predicted growth.