The Big Take

Age of Scarcity Begins With $1.6 Trillion Hit to World Economy

New fault-lines are likely to outlast war and plague — leaving the global economy smaller and prices higher.

Falling trade barriers and hyper-efficient logistics produced an age of abundance for many. But the last four years have brought an escalating series of disruptions.

Source: Bloomberg

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The ties that bind the global economy together, and delivered goods in abundance across the world, are unravelling at a frightening pace.

Russia’s invasion of Ukraine and China’s Covid Zero lockdowns are disrupting supply chains, hammering growth and pushing inflation to forty-year highs. They’re the chief reasons why Bloomberg Economics has lopped $1.6 trillion off its forecast for global GDP in 2022.