As the world continues to deal with the COVID-19 pandemic, record-high oil and gas prices owing to the ban on Russian energy imports are the new threat to the economic recovery. Analysts expect the skyrocketing oil and gas prices along with looming interest rate increases to control inflation to result in a recession this year. Goldman Sachs recently downgraded its growth outlook for both the United States and the European Union in the face of surging prices and declining economic growth rates.
However, since groceries are consumer staples, businesses in this space should see steady demand. The industry is expected to perform steadily even if the economy suffers a recession because grocery stores can easily pass on rising costs to consumers, capitalizing on the inelastic demand for their products.
