COVID-19 Impact on Global Economic Landscape
COVID-19 has put much of the global population in partial or total lockdown. The short-term effect on supply chains, consumer demand and employment rates is evident, but the long-term impact on international trade, global supply chains and the global economy remains unclear.
Recent report, Beyond COVID:19 Supply Chain Resilience Holds Key to Recovery, explores how the global pandemic is reshaping supply chains and sectorial activity, and where to look for recovery as lessons emerge on how to ensure long-term business resilience.
Key takeaways include:
– As infection rates continue to rise around the world, economic growth is experiencing a sharp slowdown.
-Hardest-hit sectors including travel, hospitality and retail are likely to see the strongest recovery as pent-up demand is released.
– Economic recovery will depend on the ability of companies to re-mobilize complex multi-country supply chains, which is turn depends on their supply chain mapping and risk management.
-A prolonged supply-chain disruption for textiles could see manufacturers and retailers switching suppliers, leading to increased production elsewhere in a bid to meet global demand.
– Oxford Economics forecasts that global manufacturing value-added output will rebound reaching USD 13,789 billion in 2021. This represents rebound from a 3% drop in 2020 to a 6% increase for global manufacturing in 2021.
View article, COVID-19 Supply Chain Impact: The Future of Digital Operations Is Under New Pressure, for more on how supply chain resilience holds the key to recovery.