2021 Year of supply shortage:
This has meant that people and businesses around the world are having to contend with shortages of just about everything from bikes to cars, toys to smartphones, reinforced concrete to computer chips, and Commoditiy Waiting periods have become painstakingly long. Also Container prices have soared to record highs as companies race to get their goods on ships. While transporting costs have fallen in recent months, they remain exorbitantly high with the average cost of transporting a 40-foot steel box of cargo by sea at nearly $9,300 as of December 16, up 170% from a year ago, according to Drewry Shipping.
Global growth did roar back, But soon lost his momentum. A sudden demand for goods coupled with chaos in the shipping industry threw global supply chains off track, taking the steam off the recovery.
The global recovery has lost momentum and is becoming increasingly uneven, the Organization for Economic Cooperation and Development (OECD) said in its latest economic outlook Wednesday, adding that the emergence of the omicron variant could threaten recovery.
The 38-member body now expects global output to grow by 5.6% this year, down 0.1 percentage point from its September outlook. It maintained its forecast of 4.5% growth in 2022, however.
We are concerned that the new variant of the virus, the omicron strain, is further adding to the already high levels of uncertainty and risks, and that could be a threat to the recovery,” OECD Chief Economist Laurence Boone told reporters.
Recovery is being held back by supply bottlenecks and labor shortages. Calling for swifter vaccinations, it warns growth could be further derailed by new variant omicron.
The recovery in advanced countries has been supported by prompt and massive fiscal and monetary policies that saw trillions of dollars pumped into those economies, and swifter rollout of effective COVID vaccines.