The Bank of Korea: "Rising Inflationary Pressures... Increased Possibility of Prolongation"
[Asia Economy Reporter Jang Sehee] The Bank of Korea recently forecasted that the global supply bottleneck phenomenon could last longer than expected.
In a 'Business Status' report submitted to the National Assembly's Planning and Finance Committee ahead of the October 15 parliamentary audit, the Bank of Korea diagnosed, "Supply bottlenecks are occurring during the process of economic activity resuming mainly in major advanced countries this year," adding, "This acts as a factor that partially restricts the economic recovery of major countries and expands inflationary pressures."
Recently, disruptions in vehicle semiconductor production due to the spread of the COVID-19 Delta variant and delays in maritime logistics caused by congestion at major ports have raised concerns about supply chain collapse.
In addition to these phenomena, the power shortage in China that occurred last month is also seen as potentially causing additional supply disruptions.
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The Bank of Korea stated, "While supply bottlenecks are expected to gradually ease as investment expansion and production adjustments take place in the future, there is also a latent possibility that they may last longer than expected depending on the infectious disease situation."
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