ECB Explains What Amplified the Great Trade Collapse of 2020
A Maersk container ship departs the Port of Rotterdam.
Photographer: Jock Fistick/Bloomberg
With global trade enduring mounting damage from months of supply-chain disruptions, the European Central Bank has just come out with an estimate of how bad the fallout might be.
According to new research by ECB economists Simone Cigna and Lucia Quaglietti, the contraction in world commerce tied to the Covid-19 shock could be magnified by some 25% purely because of such logistical breakdowns.