Europe, the Middle East, and Africa (EMEA) saw the cautious beginning of a recovery early this year with high expectations for the rest of the year. However, businesses will still face demand volatility, domestic uncertainty in major markets as well as a K-shaped recovery where certain industries and consumer segments see a fast recovery, with others lagging. This volatility calls for a sophisticated strategy that accounts for short-term variations in activity and prioritizes markets and segments that will see sustainable recoveries. Our EMEA research team outlined our baseline expectations for the year:
- We remain on track for a stronger H2 2021. A growing vaccination campaign supports a stronger demand recovery as 2021 progresses, so companies should expect to see a pickup in demand in the second half of the year. Executives should leverage the diversity of the EMEA region to focus on markets with faster recoveries and more positive short-term dynamics.
- Global conditions will be relatively supportive in the coming months. The strong recoveries in China and the US are boosting EMEA’s exporting-based and commodity-producing markets. Continued loose monetary policy and relatively low consumer prices will also support the outlook for the region.
- Consumer demand will recover gradually but expect a K-shaped recovery. In developed markets, consumer spending and activity have been more resilient than they were at this time last year. Companies should expect to see spending pick up even further as more markets advance their vaccination schedules and open fully.
Read the May 2021 update to our 2021 Europe, Middle East, & Africa Outlook for a full breakdown of the global drivers of the region this year and how they impact your business.FrontierView has all the information you need about your market, industry, and company in real-time to power your business decisions. We offer a solution that puts the right information at the right time, at your fingertips. If you would like more insights into your specific markets, click the “Start Free Trial” button on your screen to speak with a dedicated Client Services Manager and receive complimentary access to our offering.