Disrupted supply chains in Europe and the USA

The supply chains of many companies are still affected by the coronavirus crisis. This particularly impacts the USA and the Eurozone. This is shown in the graphic, which is based on data from the International Monetary Fund (IMF). Supply chains in China and emerging markets, on the other hand, are less affected. This index is calculated by the IMF from the difference between the delivery time and production indices of the Purchasing Managers' Index (PMI). A high value indicates significant disruptions in supply chains.

Background to this development: Many countries have implemented numerous anti-pandemic measures, which have triggered significant delays in value and supply chains. For example, control and quarantine zones at logistics hubs have led to supply bottlenecks. As a result, many suppliers have been hampered in their production and have been unable to fully meet their delivery obligations. A lack of components can quickly and severely disrupt production processes. Added to this are the shortages of workers due to illness or travel restrictions.

According to the IMF, supply chain disruptions, along with rising commodity prices and accumulated consumer savings, are a reason for rising consumer prices. The IMF predicts that this global inflation will peak at the end of 2021 and then fall back to pre-crisis levels in many countries by mid-2022.

The supply chains of many companies are still affected by the Corona crisis. This primarily affects the USA and the euro zone. This is shown in the graphic below based on data from the International Monetary Fund (IMF). Supply chains in China and emerging markets, on the other hand, are less affected. This index is calculated by the IMF from the difference between delivery times and production indices of the Purchasing Managers' Index PMI. A high value here means many disruptions in the supply chains.

The background to this development is that many countries have introduced numerous anti-pandemic measures that have triggered severe delays in value and supply chains. For example, control and quarantine zones in logistical hubs have led to supply backlogs of goods. As a result, many supplier companies were hampered in their production and could no longer fully meet their delivery obligations. And missing supplier parts can quickly have a massive impact on production processes. Added to this is the loss of labor due to illness or travel restrictions.

According to the IMF, supply chain disruptions, along with rising commodity prices and accumulated consumer savings, are one reason for rising consumer prices. According to the IMF, this global inflation will peak at the end of 2021 and then fall back to pre-crisis levels in many countries in mid-2022.