Global supply-chain hiccups caused by the coronavirus have put a damper on economic growth, but the problem will be a fleeting one, JPMorgan Chase CEO Jamie Dimon said Monday
“I should never do this, but I’ll make a forecast,” Dimon said at a conference held by the Institute of International Finance. “This will not be an issue next year at all. This is the worst part of it, I think great market systems will adjust for it like companies have.”
The pandemic has laid bare how interconnected global supply systems are. For instance, a shortage of semiconductor chips has hampered manufacturers of cars and electronics. A dearth of willing workers has resulted in container ships idling at major ports and delays in shipping goods to retailers.
While some experts believe some pain will continue through 2023, Dimon has a rosier view. He said Monday that he believes the economy is set up for growth over the next few years. Part of that is because the strength of the consumer, he said.
“Keep in mind, the consumer’s buying other stuff,” Dimon said. “They can’t buy cars, they’re buying home improvement; they can’t travel internationally, they travel domestically. The spend level is very high.”
“Because of the strength of the consumer, which is extraordinary, they’re spending 20% more than they were spending pre-Covid,” he added. “And companies are in great shape, they can continue to spend at these levels for a long time.”
Supply chain disruptions may end up merely elongating the recovery rather than derailing it, Dimon said.
This story is developing. Please check back for updates.
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