A recent report from Moody’s outlines sectorial and regional variations in economic outlook depending on how the war in Ukraine unfolds in the coming months and years. The downside scenario accounts for a situation where energy trade between Europe and Russia halts, leading to recession in Europe that could spread across industries and the rest of the world. The outlook for paper packaging, on a sectorial basis, is positive across geographies because it has very sound fundamentals, driven by plastic substitution and e-commerce growth. The price and supply uncertainties of gas and oil, essential components in paper production, could create challenges with a lack of short-term solutions. Around 70% of paper packaging is used by Fast Moving Consumer Goods Goods Goods (FMCG) . . .
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