Read the full report Megatrends – Economic and Political Volatility – Global
November 26, 2025 – Global economic growth is forecast to remain subdued across the next two to three years with the backdrop of a more volatile political and economic context, though a global recession is not currently expected.
Trade policy uncertainty is one of the downside risks to economic growth, with the full impacts and outcomes of tariffs not yet fully known. Continuing conflicts and climate change shocks present additional risks, with the latter a particular threat to developing and emerging countries that also have less fiscal headroom to recover from the effects.
For CPG companies, navigating an uncertain economic outlook and more complex trading environment while mitigating against supply chain risks will require greater flexibility and adaptability across all aspects of the business, from product strategies to sourcing solutions. Meeting the needs of price-conscious consumers will continue to be key while innovating with added-value solutions targeting those consumers with higher levels of disposable income.
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