A recent study shows that the "economic scarring" caused by the pandemic may lead to a permanent loss of production and structural changes in international trade supply chains.

Quoted by the portal "Executive Digest", the study developed by the insurance company Crédito y Caución focuses on Asia and warns of a future context marked by savings by families and companies and by fiscal consolidation of public spending.

"All over the world, government measures have limited the erosion of employee skills and the dismantling of companies. This has been crucial for supply to remain more or less intact and to avoid a situation where pent-up demand cannot be met by supply in the recovery phase. The longer the pandemic lasts and the greater its impact, the more scarring will occur," says the insurer's report.

This analysis reveals that Asia will be especially affected by the current scenario caused by the pandemic, as its impact will be long-lasting on most of its markets, with its GDP expected to be 3% lower in 2025 than it was before the pandemic.

It also reveals that India, the Philippines, and Indonesia will be the Asian countries where Covid-19 will leave the greatest permanent damage.

"The trade war, the increased cost of medical products in the initial phase of the pandemic, and the current shortage of chips" are the main reasons that have led Public Administrations to bet on greater self-sufficiency in strategic sectors, such as cutting-edge technology or pharmaceuticals.

Companies have also adapted to this new reality, adjusting and redesigning supply chains in order to mitigate the risks of future external shocks, sacrificing part of their profitability.