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What results did the main «factory of the world» show at the end of the year?
Companies have only partly addressed the weaknesses in global supply chains exposed by the coronavirus pandemic. In the face of new challenges, finishing the job is even more urgent.
Economic growth has picked up this year, helped by strong policy support, the ongoing deployment of effective vaccines and the gradual resumption of many economic activities, particularly in service sectors.
China's factory output and retail sales growth slowed sharply and missed expectations in July, as new COVID-19 outbreaks and floods disrupted business operations, adding to signs the economic recovery is losing momentum.
The economic sentiment in the Eurozone is reaching new heights, suggesting the long-awaited recovery is finally gathering speed. But risks remain, including the spread of COVID-19 variants leading to new restrictions, and scarce input factors for the European industry.
The paths of the COVID-19 pandemic and the recovery of the global economy remain impossible to predict. But it is becoming increasingly clear that, disruptive impact on international trade will leave a lasting mark. Companies should take a fresh, holistic view of the markets and trade relationships that are likely to drive growth and secure competitive advantage in the post-COVID-19 world.
