The ongoing disruption in the global supply chain has caused spikes in the price of consumer products.
The International Monetary Fund (IMF) has cut its global growth forecast, blaming supply disruptions and the COVID pandemic. On Tuesday, the IMF projected that the global economy will grow at 5.9% in 2021, 0.1 percentage points lower than the July full-year 2021 forecast.
"The downward revision for 2021 reflects a downgrade for advanced economies—in part due to supply disruptions—and for low-income developing countries, largely due to worsening pandemic dynamics," the report read. "This is partially offset by stronger near-term prospects among some commodity-exporting emerging market and developing economies. Rapid spread of Delta and the threat of new variants have increased uncertainty about how quickly the pandemic can be overcome. Policy choices have become more difficult, with limited room to maneuver."
JPMorgan (JPMO) CEO Jamie Dimon, however, recently argued supply chain issues will be resolved by next year.
Addressing a conference on Monday, Dimon argued that consumer are spending 20% more than pre-COVID with consumer demand shifting, rather than easing.
“I should never do this, but I’ll make a forecast.This will not be an issue next year at all. This is the worst part of it," Dimon said. "I think great market systems will adjust for it like companies have.”