EMEA Outlook for 2022

In line with our expectations, EMEA saw the cautious beginning of a recovery in Q1 2021, with growth supported by relatively resilient consumer spending in developed markets, as well as strong demand for exports driven by the US and Chinese recoveries. We expect an accelerating pace of recovery for the rest of the year, with late Q3–Q4 activity supported by what should be more permanent reopening in major markets in Western Europe. However, MNCs will still face demand volatility, domestic uncertainty in major markets—from economic, political, and health perspectives—as well as a K-shaped recovery, where certain industries and consumer segments see a much faster recovery, while others lag behind. These elements call for a sophisticated strategy that accounts for short-term variations in activity and prioritizes markets and segments that will see sustainable recoveries. Leadership teams will continue to benefit from working with scenarios for the rest of this year to reflect the uncertai