Virus prompting cultural shift to buying local, Christine Lagarde saysBusiness | 16 Jul 2020 9:58 pm
European Central Bank president Christine Lagarde, has predicted that the coronavirus pandemic will have an adverse impact on global trade, for two reasons, The Guardian reports.
First, there is the mechanical impact. As the pandemic rolls around the world, with some nations worse hit than others, export-led are suffering as potential customers are locked down.
“Some of those countries who were relying on trade are having to reconsider, and to rely more on their domestic market rather than exports,'' she said.
Secondly, Lagarde predicts a “cultural, sociological, and maybe philosophical change” from the pandemic – with individuals and companies giving more value to goods made locally.
“Consumers will be more attentive to the origin of goods, the place of manufacturing.
"And corporates themselves, who had been largely dependent on far away supply chains, or very complicated and fragmented supply chains, suddenly rediscover the benefit of proximity,'' she said.