The main theme of the 2023 Global Value Chain Development Report is the resilience and sustainability of value chains in response to the diverse shocks of recent years. It provides an overview of the most recent trends in GVCs (chapter 1), in particular the effects of trade tensions and the COVID-19 pandemic (chapter 2), as well as geopolitical tensions on GVCs. It illustrates some of the effects by providing case studies on energy supply chains (chapter 3) and semiconductor value chains (chapter 4). The report then turns to challenges brought about by the climate crisis. It first shows results of different methods tracing CO2 emissions through GVCs (chapter 5) and then offers a framework to help greening GVCs (chapter 6). The report concludes with emphasizing the immense potential of GVCs for supporting inclusive development (chapter 7). Examining GVCs in Times of Global Shocks Chapter 1 provides an overview of recent developments in GVCs from the perspective of recent major global shocks to international trade. Recent data showed some potential for recovery, with gross exports and GVC participation increasing from 2020—an oberservation that holds true in both nominal and real terms. However, the presence of ongoing global shocks – including the Russian war in Ukraine, lingering economic effects of the COVID-19 pandemic, and trade tensions between the United States and the People’s Republic of China (PRC) – may threaten to derail this trajectory, thereby promoting the need to assess potential sources of the vulnerability that GVCs have towards shocks.
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