Diversify global supply chains, don’t dismantle them, IMF says

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Reuters UK

By David Lawder WASHINGTON (Reuters) – The COVID-19 pandemic wreaked havoc on global supply chains but new International Monetary Fund research shows that more diversification of source countries and inputs can significantly reduce the economic drag from supply disruptions. In an analytical chapter of its forthcoming World Economic Outlook, IMF researchers said that countries experienced larger declines of goods imports, and GDP, in the first half of 2020 when trading partners imposed strict COVID-19 lockdowns. Such declines revealed the vulnerabilities of value chains optimized for maximum ef…

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