Supply/Demand Mismatches and 2021 Economic Growth

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Supply/Demand Mismatches and 2021 Economic Growth

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Tani Fukui
MAR 16, 2021

Summary

After a volatile and uncertain year, both consumers and producers may need to feel their way to a new post-pandemic normal. We expect this will mean hesitation by consumers, particularly with respect to residual safety concerns, and trial and error by producers as they work to figure out how to best supply the post-pandemic consumer.

Key Takeaways

  • We expect a rocky economic recovery.
  • Restarting consumption may be surprisingly difficult.
  • Supply chain impediments and bankruptcies may hinder the supply side.
  • Delivering for the post-pandemic consumer will be a major challenge for businesses this year.