BIS to Fill Global Value Chain Monitoring Data Gaps with Project Insight

Of Fintech News Singapore
July 10, 2024

THE Bank for International Settlements (BIS) It’s ready for launch Project insightsan initiative to improve the monitoring of global value chains (GVCs) through advanced data analytics.

This project aims to fill gaps in existing data and improve the ability of policy makers to monitor trends and changes within global value chains.

Global production and trade, segmented into GVCs, have become standard practice. However, there are significant gaps in data and analytics that prevent effective monitoring of these chains.

Recent disruptions, such as those caused by the Covid-19 pandemic, have highlighted the limited understanding of corporate-level GVC relationships and their broader economic impacts.

These disruptions have caused supply chain bottlenecks, disrupted supplier relationships, and contributed to rising inflation globally.

Efforts to restructure supply chains through reshoring and near-shoring further underscore the need for better monitoring tools.

Understanding the dependencies of global value chains (GVCs) is critical for central banks and policy makers, as these chains are closely linked to key objectives such as price stability and economic growth.

Supply chains are increasingly becoming a focal point in the considerations of central banks and regulators around the world.

Project Insight aims to create a comprehensive GVC monitoring system to assist central banks, policy makers and international organizations in assessing critical developments and their economic and financial impacts.

The project will collaborate with the private sector to integrate large structured and unstructured data relevant to global value chains.

It will also leverage big data analytics tools, including artificial intelligence, machine learning, and network analytics, to derive meaningful insights.

This initiative involves collaboration between the Hong Kong Centre of the BIS Innovation Hub, the Monetary and Economic Department of the BIS, the Hong Kong Monetary Authority, the International Monetary Fund, the World Trade Organization, the Asian Development Bank, the Organisation for Economic Co-operation and Development, the United Nations and the DIW Berlin.

Featured image credit: edited by Free image

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