What should we expect to see with regards to salary packages and wage inflation during 2010?
Mitul: Cutting wages was crucial for companies to return to profitability this year and wage inflation is only likely to pick up slowly given the excess slack in the jobs market. Higher unemployment at least until the middle of next year suggests that the labour market will remain loose for some months to come. Nonetheless, in some areas where there is stronger expansion, wage growth and compensation packages have increased substantially. Sital: And looking towards 2010, who are likely to be the winners and losers? Mitul: I continue to believe that in terms of regions, emerging markets will continue to out-perform given the stronger economic performance expected. G4 economies will recover more slowly and my fear is that markets have been pricing in a stronger recovery than is likely. I think recovery will become more entrenched, but I find it hard to believe that we will see a “normal” recovery. 2010 will likely be a year of steady economic improvement but one that will still be very f
