Supply chain crisis hits world economy as companies face higher input costs

A prolonged supply chain crisis could severely impact the world economy as it would lead to a rise in inflation across several countries.

A prolonged supply chain crisis could negatively impact the global economy for longer than expected earlier. Disruption in global supply chain mechanism including shipping operations could last well into next year as surging Covid cases threaten to hamper factory production in Asia. As a result of the supply chain crisis, manufacturing companies across the globe are facing shortages in key components and parts. This has not only led to delay in operations but they also have no choice but to bear high costs for raw materials.