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Global loss of manufacturing export due to lockdowns in the three global supply

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Tuesday, 23 June, 2020, 16:45
Global loss of manufacturing export due to lockdowns in the three global supply

While most countries experienced some form of shutdown, the findings in the SME Competitiveness Outlook highlight that it was lockdowns in China, the European Union and the United States that have had the greatest impact on trade. Together these three economies account for 63% of world supply-chain imports and 64% of supply-chain exports. The report estimates that the global disruption of these manufacturing hubs will amount to $126 billion in 2020.This disruption is also having a negative knock-on effect on developing countries. The SME Competitiveness Outlook predicts that African exporters are set to lose more than $2.4 billion in global industrial supply-chain exports as a result of factory shutdowns in China, the EU and the US. The bulk of this loss - more than 70% - is caused by the temporary disruption of the supply-chain linkages with the EU.