The global supply chain nightmare is about to get even tougher
The supply chain nightmare is jacking up prices for consumers and slowing the global economic recovery.
Unfortunately, Moody's Analytics warns supply chain disruptions "will get worse before they get better."
"As the global economic recovery continues to gather steam, what is increasingly apparent is how it will be stymied by supply-chain disruptions that are now showing up at every corner," Moody's wrote in a Monday report.
Indeed, the IMF downgraded its 2021 US growth forecast on Tuesday by one percentage point, the most for any G7 economy.
The IMF cited supply chain disruptions and weakening consumption — which itself has been partially driven by supply chain bottlenecks such as a lack of new cars amid the computer chip shortage.
"Border controls and mobility restrictions, unavailability of a global vaccine pass, and pent-up demand from being stuck at home have combined for a perfect storm where global production will be hampered because deliveries are not made in time, costs and prices will rise and GDP growth worldwide will not be as robust as a result," Moody's wrote in the report.