How Resilient is the Global Economy?

In the second of our series on threats to the global economy, David Brenchley looks at whether a cyber-attack would derail world trade 

David Brenchley 7 March, 2019 | 9:22AM

Disasters

Yesterday we looked at the risks of a co-ordinated cyber-attack, and this leads us on to what kind of impact a cyber-attack might have on the global economy. The first thing to note is that it would be a supply-side shock, says Capital Economics' senior economic adviser Vicky Redwood.

In the pre-industrial economy, supply-side shocks – like poor harvests, wars or disease – were the source of virtually all downturns. As the global economy became more industrialised, demand-side shocks became more commonplace – often via credit contractions and falling asset prices – and the magnitude of supply-side shocks diminished.

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About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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