Report
Patrick Artus

Why are OECD economies destabilised?

The underlying reason why OECD economies are now destabilised is that they have been hit by shocks that require faster adjustments than are usually possible. In chronological order: The shift in the structure of demand from services to goods, requiring a shift in the productive system that is impossible to achieve rapidly, giving rise to scarcities and sharp price rises; The cessation of imports of commodities and components from Russia and Ukraine. To be offset, it would require the build-up of new capacity in other producer countries, which cannot be done rapidly, leading to further scarcities and price rises; The energy transition, which will require the replacement of fossil fuels with renewable energies at an abnormally fast pace, leading to a drastic need for investment and the risk of energy shortages and also a sharp rise in demand for certain metals. One might therefore say that in reality, there has been a lack of foresight: OECD economies needed to prepare earlier for the increase in goods production, independence from Russia and the energy transition.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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