Planning season: 12 priorities emerging from macroeconomic trends Context Six macro trends in 2022 Considerations when planning for 2022 pages 0 2. n o 1 i Prepare for growing but slowing macro outlook, as many economies return to tight conditions s r Growth slowdown 4-5 e 2 Account for multiple growth dynamics as varying degrees of structural scarring materialize 1 V 202 r e b o t c 25 O Consumer-led recovery 3 Focus on drivers behind consumers’ ability to sustain recovery asfiscal stimulus retreats ed t 6-8 a d going forward Assess demand shifts and the drivers and sustainability of consumption overshoots p 4 u es v i t ec p s er 5 Expect acute bottlenecks to ease as intense “scramble” to rehire workers lessens P Labor market e v i t 10-12 u Protect margins with productivity-enhancing investments as wage pressures will persist ec bottlenecks 6 x E G omy C B . on ed c v e Product market 7 Monitor economy’s inventory dynamics to separate macro stress from intense localized pain er es S r s 13 t h g U bottlenecks 8 Invest in supply chain resilience to continue recovering and prepare for future disruptions i r e l l h A . p u o r om t G 9 Understand and monitor the drivers of cyclical vs. structural inflation to assess risks g r Inflationary n i t f l s 14-16 u t s n h pressures 10 Do not conflate temporary pricing power with persistent pricing power and act accordingly o C g i n o t s s n o I B y 11 b Monetary policy Plan for soft and orderly exit from ultra-low policy rates but risk of faster pace of tightening 1 2 0 17 2 © and rates 12 Consider the risk of volatility as policy errors have potential to upset markets and even the cycle t h g i r y p o 33 C Source: BCG