The economic recovery is underway. Grant Thornton’s International Business Review reports increased business optimism and the labour market is emerging from the pandemic in better health than previously expected. While forecasters have raised their views on the outlook for the year, there are emerging constraints to the recovery. Energy cost, inflation more generally and skills shortages could dampen the relatively buoyant economic mood. Andrew Webb offers his views on economic prospects for the year ahead and what it means for asset management.