Although China’s Omicron wave means that its economy is facing its sharpest slowdown since early 2020, so far it looks like disruptions to global supply chains will be milder than those experienced during China’s Delta wave. But if supply chains were to come under further pressure, then emerging Asian economies would be most affected. And within DMs, renewed shortages – particularly of electrical goods – and higher shipping costs could keep goods inflation higher for longer than we currently expect.
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