The primary benefit of corporate portfolio diversification is financial stability. This means that if one business line declines, another can support the company, reducing financial risks.
There have been a significant reduction in the consensus of 2022 and 2023 global growth forecasts. According to World Bank, the invasion of Ukraine by Russia along with continuous supply disruptions caused partly by the pandemic, and various tightening of macroeconomic policies to reduce inflation and reverse the pervasive measures taken during that time, are few of the most significant factors that contribute to this phenomenon.
