Ifo Institute warns against moving away from global supply chains

The Ifo Institute has warned against moving away from international supply chains. If outsourced parts of production were brought back to Germany, German economic output would shrink by almost 10 percent, the economic researchers said on Thursday. If other countries followed a similar strategy or levied retaliatory tariffs in response, the drop could be even greater, said Ifo foreign trade expert Lisandra Flach. According to Andreas Baur, co-author of the study, the production of German inputs that are then processed abroad contributes more than 600 billion US dollars to German value creation. (dpa)

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