Global supply lines brace for ‘menacing’ economic storm to widen

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Global supply lines brace for ‘menacing’ economic storm to widen
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Global supply strains that started to ease in early 2022 are worsening again as headwinds strengthen from the war in Ukraine and China’s Covid19 lockdowns, threatening slower growth and faster inflation across the global economy. Moneyweb Economy

Global supply strains that started to ease in early 2022 are worsening again as headwinds strengthen from the war in Ukraine and China’s Covid lockdowns, threatening slower growth and faster inflation across the global economy. After the pandemic hit Asia-US trade routes the hardest over the past two years, the latest turmoil is being acutely felt in Germany, which is heavily reliant on Russian energy and suppliers across Eastern Europe.

“Bottom line, an already complicated picture has become even more complex.” Trade is already feeling the sting of sanctions on Moscow and blocked transport routes. According to FourKites Inc., a supply-chain visibility platform, Russian imports across all modes of freight transportation dropped 62% over the first month of the conflict, while shipments into Ukraine plunged 97%.

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