Afternoon Coffee: IMF sees spark in dire global economy; Jaggaer webinar targets supply chain risks; Consumer prices rise in September

The International Monetary Fund forecasted a sharp decrease in international economic growth this year as the global economy struggles to recover from COVID-19 and its subsequent recession, according to the Associated Press.

The IMF on Tuesday estimated the global economy will shrink 4.4% for 2020, which would be the worst annual plunge since the Great Depression in the 1930s. The latest estimate represents an upgrade of 0.8 percentage points from the previous estimate in June, the article reported. The IMF said this more optimistic outlook comes from faster-than-expected rebounds in some countries, like China, and to government aid enacted by the United States and major industrial countries.

The agency cautioned that some developing countries, like India, are faring worse than expected. Nations face the threat of economic reversals if government support is withdrawn too quickly, the article said.

“While the global economy is coming back, the ascent will be long, uneven and uncertain,” Gita Gopinath, the IMF’s chief economist, wrote in its statement. “Recovery is not assured while the pandemic continues to spread.”

Jaggaer webinar provides tips for developing a risk management architecture

Last week, Jaggaer held a webinar where panelists discussed the importance of developing a risk management architecture to survive economic disruption and other risks to the supply chain, according to Supply Chain Dive.

The webinar titled “Do you have a 360-degree view of your suppliers?” featured three experts from Spend Matters, EcoVadis and riskmethods to provide tips on procurement risk management. Over one-third of webinar participants said their company didn’t have any formal risk management plan in place. Supply chains are considered a major priority during the COVID-19 pandemic, but only 11% reported having a strategic plan across all supply bases, the article said.

Panelists concluded that there has to be investment in creating a comprehensive risk management plan to successfully prepare and mitigate procurement risk. The plan should include data, sustainability and foster communication or partnership between stakeholders.

"Procurement needs to align the various stakeholders who own the risk or impact the risk across various processes," said panelist Magnus Bergfors, Spend Matters' VP of European Research and Lead Analyst.

To view an on-demand version of the webinar, use this Jaggaer link.

Consumer-price index increased last month; cost-of-living for Social Security rises

The U.S. Labor Department reported Tuesday that the U.S. consumer-price index (CPI) increased to a seasonally adjusted 0.2% in September, according to the Wall Street Journal.

The CPI is a gauge of inflation that measures what consumers are paying for goods and services, including gas, food or shelter. September’s increase marks the fourth consecutive month of gains, but it was smaller than June, July and August, the article reported. The numbers were on par with what economists anticipated.

Additionally, the federal government announced that seniors and other Americans receiving Social Security will see a 1.3% increase in benefits next year. The 2021 cost-of-living adjustment is smaller than what was seen this year, the article said. The Social Security Administration bases its cost-of-living increase on the Labor Department’s CPI for urban wage earners and clerical workers. The article reported that the average for the third quarter of this year was 1.3% higher than the same period last year, translating to a cost-of-living adjustment at that amount.

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