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The Covid-19 trade contraction: A view from global shipping, the EU and China

Author

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  • Chowdhry, Sonali
  • Felbermayr, Gabriel
  • Stamer, Vincent

Abstract

This policy brief examines the effects of the Covid19 pandemic on international trade. Major exporting economies have posted record year-over-year monthly declines in export volume ranging from -7.9% in Germany to -24.3% in South Korea. While logistical bottlenecks are being solved, low demand puts pressure on trade activity. The shipping industry has reduced its activity around Europe, Asia and America by up to -10% pointing to a prolonged reduction in trade. Over the first quarter of 2020, China's trade contracted severely with most economies - particularly Canada, Japan, Russia, Italy and South Africa.The trade collapse affects businesses differently and especially hits those firms that participate in low-value added stages of global value chains by assembling components.

Suggested Citation

  • Chowdhry, Sonali & Felbermayr, Gabriel & Stamer, Vincent, 2020. "The Covid-19 trade contraction: A view from global shipping, the EU and China," Kiel Policy Brief Special Corona-Update 4, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkpb:spezial-corona-update-4en
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    File URL: https://www.econstor.eu/bitstream/10419/218832/1/KPB-Spezial-Corona-Update-4en.pdf
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    References listed on IDEAS

    as
    1. Manova, Kalina & Yu, Zhihong, 2016. "How firms export: Processing vs. ordinary trade with financial frictions," Journal of International Economics, Elsevier, vol. 100(C), pages 120-137.
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    Keywords

    Trade; Covid-19; China; GVCs; Handel;
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