December 9, 2021 | 2:05 pm
The COVID-19 pandemic and problems in supply chains are major challenges identified by companies in 2022, according to the Global Economic Survey published today by Eurochambres.
The list also includes: political instability, raw material prices, tightening financing conditions, or financial crises; And the increase in inflation rates, according to this report prepared in cooperation with the global platform of chambers of commerce.
“Recent setbacks in the fight against the epidemic, which are added to the disruptions in supply, have affected the economic outlook of the international business community,” the document said.
problem
The duration of the COVID-19 pandemic and emerging new variables have undermined the growth outlook for many companies, although these remain “somewhat positive,” according to the report.
The most pessimistic are those from Southeast Asia, China and Russia, while in Europe, Latin America, Turkey and the Gulf region, they are somewhat more optimistic.
To address the supply problem, companies call for intensified multilateral cooperation to anticipate crises and better plan, as well as provide financial incentives to facilitate trade in raw materials and intermediate goods.
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However, they do not consider it a priority to reduce tariffs on exports of raw materials from third countries.
On the other hand, they also fear weakness in financial markets if there is a “sudden withdrawal of expansionary monetary policies”, as well as higher borrowing costs or difficulties in accessing foreign direct investment.
On the financial side, they are concerned about the implementation of the international tax agreement sealed in the Organization for Economic Co-operation and Development (OECD).Organization for Economic Cooperation and Development), which sets a global minimum corporate tax rate of 15% and that corporations must pay taxes in all countries in which they do business for a portion of their profits, even if they are not located there.
They noted, in particular, the lack of tools to ensure compliance with the rules and the absence of a dispute resolution mechanism.
Pay inequality is another big problem
According to Organization for Economic Cooperation and Development.
“Wages are not determined by workers’ skills exclusively, but many companies give a premium over another to employees with similar qualifications and experience, according to the study’s authors.”
In practice, the Organization for Economic Co-operation and Development noted in a report that companies have ample room for maneuver to differentiate wages from what their competitors do.
One of the “key” elements explaining this phenomenon is corporate productivity, said OECD chief economist Lawrence Boone in the online presentation of the document.
Boone said that in countries with large productivity gaps between firms, wage disparities are larger.
The United States is by far the 20th country in the sample with the greatest wage dispersal, followed by Estonia, Hungary, Canada, Costa Rica, Japan and Spain. At the other end are Finland, Germany, Italy, Denmark and Sweden.
Despite cautious optimism for the coming year, #Business Be wary of 1️⃣ the ongoing impact of COVID-19 2️⃣ supply chain disruption and 3️⃣ political/social instability, # 2022GCPS Survey reveal.
Access to the full report ➡ https://t.co/OjcXHmvIZu pic.twitter.com/9Zm5fWOcp3– EUROCHAMBRES (EUROCHAMBRES) December 9, 2021
