The disruptions to the global economy during the pandemic have upset supply chains across continents.
On Wednesday, World’s top central bankers issued a warning about supply constraints thwarting global economic growth could still get worse, keeping inflation elevated longer, even if the current spike in prices is still likely to remain temporary.
It’s all because of the pandemic making another wave of disruption to the global economy that has upset supply chains across continents.
The world is now short of a plethora of goods and services from car parts and microchips to container vessels that transport goods across the seas.
Federal Reserve Chair Jerome Powell said in a statement, “It’s … frustrating to see the bottlenecks and supply chain problems not getting better, in fact at the margin apparently getting a little bit worse and We see that continuing into next year probably and holding inflation up longer than we had thought.”
“The supply bottlenecks and the disruption of supply chains, which we have been experiencing for a few months … seem to be continuing and in some sectors accelerating,” Lagarde said. “I’m thinking here about shipping, cargo handling, and things like that.”
What should we expect?
In recent months, Global inflation has spiked on a surge in energy prices, and the production bottlenecks are pushing prices even higher, raising fears that the runup, if it lasts long enough, could seep into expectations and raise the overall profile of inflation. What a herroundoues flow, isn’t it?
The leadership here is certain, things should be united and inflated with hope and a very effective system. Certainly, that is what we needed here..