Supply Chain Disruptions Raise Inflation, Worsen Financial Conditions - Georgieva

Supply Chain Disruptions Raise Inflation, Worsen Financial Conditions - Georgieva

Supply chain disruptions caused by the pandemic contribute to inflation and lead to worsening financial conditions, IMF Managing Director Kristalina Georgieva said on Thursday

WASHINGTON (Pakistan Point News / Sputnik - 20th January, 2022) Supply chain disruptions caused by the pandemic contribute to inflation and lead to worsening financial conditions, IMF Managing Director Kristalina Georgieva said on Thursday.

"We are also, all of us, affected by disruption of supply chains and these disruptions in countries where demand has caught up but supply hasn't is one of the factors pushing inflation up," Georgieva said. "What does it mean - potentially heightening of financial conditions."

According to last week's UN World Economic Situation and Prospects (WESP) 2022 report, the global economy is projected to grow by 4% this year and 3.5% in 2023 after a strong recovery in 2021.

New waves of COVID-19 infections, persistent labor market challenges, supply-chain disruptions, and soaring inflation affect global economic recovery, the report said.