Demand for corporate and commercial legal services is slowing dramatically as the post-lockdown boom continues to abate, according to a respected market bellwether. Surging inflation, new regulations and sanctions, and possible recession are already putting the brakes on growth, shows the latest Gross Legal Product (GLP) index published by LexisNexis.

The index pulls data from various sources to forecast predicted growth in corporate, commercial and competition law.  Demand surged in the second half of 2021 but the boom looks set to be short-lived. 

Demand for corporate law is expected to have declined by 22% from 2021 by the end of this year. Last year saw pent-up demand for corporate transactions and IPOs create a surge in activity, but 2022’s economically uncertain market has already taken its toll.

The workloads of commercial lawyers are expected to rise just 1% year on year, with a further increase predicted for 2023. Demand is being driven by a rebound in activity for imports and exports, foreign investments and new companies being created, LexisNexis said.

Competition law is comparatively buoyant, boosted by Brexit, the Competition and Markets Authority’s toughened stance toward enforcement, and new security and sustainability measures. This sector is predicted to grow by 17% in calendar 2022 and by a further 32% in 2023. 

The report’s editor, Dylan Brown, said: “The GLP Index is useful in highlighting areas of the law that are growing or falling in demand. It gives law firms and in-house teams some helpful hints as to where they could invest or reposition their resources.

’Today’s economically uncertain times have caused a great deal of unrest in the corporate world. The default setting for most businesses right now will be risk aversion.’