2021–2023 global supply chain crisis in the context of "Economic impact of COVID-19"

Following the start of the COVID-19 pandemic in 2020, a worldwide surge in inflation began in mid-2021 and lasted until mid-2022. Many countries saw their highest inflation rates in decades. It has been attributed to various causes, including pandemic-related economic dislocation, supply chain disruptions, the fiscal and monetary stimulus provided in 2020 and 2021 by governments and central banks around the world in response to the pandemic, and price gouging. Preexisting factors that may have contributed to the surge included housing shortages, climate impacts, and government budget deficits. Recovery in demand from the COVID-19 recession had, by 2021, revealed significant supply shortages across many business and consumer economic sectors.

In early 2022, the effect of the Russian invasion of Ukraine on global oil prices, natural gas, fertilizer, and food prices further exacerbated the situation. Higher gasoline prices were a major contributor to inflation as oil producers saw record profits. Debate arose over whether inflationary pressures were transitory or persistent, and to what extent price gouging was a factor. All central banks (except for the Bank of Japan, which had kept its interest rates steady at −0.1% until 2024) responded by aggressively increasing interest rates.

The 2020s (pronounced "twenty-twenties" or "two thousand [and] twenties"; shortened to "the '20s" and also known as "The Twenties") is the current decade that began on 1 January 2020, and will end on 31 December 2029.

During the early part of this decade, the world population grew from 7.7 billion to over 8 billion people. In 2023, India overtook China to become the most populous country in the world. The COVID-19 pandemic and its aftermath marked the early 2020s. The first reports of the virus were published on 31 December 2019, though the first cases are said to have appeared nearly a month earlier. The pandemic led to a global economic recession, sustained rise in global inflation, and supply chain crisis. The World Health Organization declared the virus a global state of emergency. With multiple extreme weather events and ecological crises continuing to escalate, several world leaders have called the 2020s the "decisive decade" for climate action. The years 2023 and 2024 both broke yearly global temperature records, with 2024 breaching 1.5 °C above pre-industrial levels.

The COVID-19 pandemic caused far-reaching economic consequences including the COVID-19 recession, the second largest global recession in recent history, decreased business in the services sector during the COVID-19 lockdowns, the 2020 stock market crash (which included the largest single-week stock market decline since the 2008 financial crisis), the impact of COVID-19 on financial markets, the 2021–2023 global supply chain crisis, the 2021–2023 inflation surge, shortages related to the COVID-19 pandemic including the 2020–2023 global chip shortage, panic buying, and price gouging. The pandemic led to governments providing an unprecedented amount of stimulus, and was also a factor in the 2021–2022 global energy crisis and 2022–2023 food crises.

The pandemic affected worldwide economic activity, resulting in a 7% drop in global commercial commerce in 2020. Several demand and supply mismatches caused by the pandemic resurfaced throughout the recovery period in 2021 and 2022 and were spread internationally through trade. During the first wave of the COVID-19 pandemic, businesses lost 25% of their revenue and 11% of their workforce, with contact-intensive sectors and SMEs being particularly heavily impacted. However, considerable policy assistance helped to avert large-scale bankruptcies, with just 4% of enterprises declaring for insolvency or permanently shutting at the time of the COVID-19 wave. According to a 2021 global modeling study, the travel and tourism sector alone could contribute to a worldwide GDP loss of up to US$12.8 trillion if the pandemic extended through the end of 2020. The study further predicted over 500 million global job losses in related industries, highlighting tourism as one of the most severely impacted sectors.