GIC sees 4 major shifts that threaten future returns, raise volatility
Singapore
TENSIONS between the US and China have been worsened by the economic pain from the pandemic. This will add to urgent calls for diversification of supply chains, though a "major retreat" from globalisation will hurt productivity growth, said GIC.
In its latest annual report, the Singapore sovereign wealth fund noted that global supply chains are likely to see "significant" structural change in the post Covid-19 world.
It has identified "intensified" globalisation headwinds as one of four major shifts that will likely result in lower future returns and increased market volatility.
"Supply chain shifts have been talked about for at least two to three years because of the trade conflict between US and China. Covid-19 added to the urgency for some companies to diversify, t…
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