The global economy now has a new problem like 'chaos in the supply chain'

Problems in the supply chain, from rising raw material prices to the lack of components such as chips, from densities at ports to shortage of truck drivers, threaten the global economy.

The supply chain, which was interrupted last year due to the coronavirus outbreak and quarantine measures, is struggling to recover as it faces rapidly increasing demand as vaccination increases and measures are relaxed.

The global supply chain covers the process from the production stage of the product to reaching the consumer and expresses the operation network in this process. Links in the chain include the manufacture of components, labor supply and logistics of goods.

While the global supply chain is struggling for many reasons, experts say the biggest challenge is the ongoing coronavirus outbreak.

SUPPLY PROBLEM NEGATIVELY AFFECTS GROWTH

Problems in the supply chain are slowing down economic activity in China, the USA and Europe.

It is noteworthy that the economy in China, which grew by 18.3 percent in the first quarter and 7.9 percent in the second quarter, lost its momentum in the third quarter and grew by 4.9 percent.

The International Monetary Fund (IMF), which reduced the global economy's growth forecast for this year from 6 to 5.9 percent and kept its growth forecast for 2022 as 4.9 percent, stated that the downward revision in this year's growth forecast is expected to increase the supply in advanced economies. It points out that the decline caused by the economic interruptions reflects the epidemic dynamics that have deteriorated greatly in emerging economies.

ENERGY CRISIS CAUSES DAMAGES

The deepening energy crisis, especially in Europe, is causing serious damage and some surprising volatility in everything from transporting goods by train to growing vegetables in greenhouses.

Governments are trying to combat the high gas and electricity prices that are plaguing energy retailers and important sources of carbon dioxide.

Energy shortages hit China and India as well as Europe, causing power outages in these countries.