Covid and it’s effects on global trade

Worldwide merchandise trade flows decreased significantly in 2020, as Covid-19 disrupted

economic activity across the globe. This column analyses how various pandemic-
related factors shaped international trade flows. Specifically, it estimates how Covid-19
incidence and lockdown restrictions affected the monthly year-over-year growth of imports from
China for all destinations to which China exported goods in 2019–2020. It finds that government
measures to curb economic activities had a larger impact on a country’s imports than the direct
health and behavioural effects of the pandemic itself.Worldwide merchandise trade flows
decreased significantly in 2020, as Covid-19 disrupted economic activity across the globe. This
column analyses how various pandemic-related factors shaped international trade flows.
Specifically, it estimates how Covid-19 incidence and lockdown restrictions affected the monthly
year-over-year growth of imports from China for all destinations to which China exported goods
in 2019–2020. It finds that government measures to curb economic activities had a larger
impact on a country’s imports than the direct health and behavioural effects of the pandemic
itself.