The procurement playbook must be rewritten in response to the changing economic conditions and supplier risk. The global economy is forecast to grow by just 2.7% in 2023 and 1.1% in advanced economies, the weakest growth since 2001. The European Central Bank's deposit rate is expected to rise further during 2023, and global inflation hit 8.8% in 2022, with the IMF predicting it will only fall to 6.6% in 2023. Interest rates are ticking up as a countermeasure, while businesses struggle to raise wages to keep pace with the cost of living. SMEs took on debt during the pandemic, and category managers predict prices to increase further next year.
