Country exposure to covid related commodity price shocks: East Africa

AUTHOR

Ismael Fofana and Leysa M. Sall

SERIES NAME

COVID-19

YEAR

2020

ABSTRACT

The pandemic has not left a single region of the world untouched. Its disruptive eff ects have equally reached into every corner of the global economy. Global primary commodity markets in particular are aff ected by many of the measures taken to adapt to and control the spread of the pandemic. Measures to minimize the risk of cross-border infections interfere with the normal operations of commerce, slowing down or impeding the movement of goods around the globe. The changes aff ecting global supply chains can have signifi cant repercussion on national economies. Changes in prices received for exports or paid for imports translate into gains or losses of foreign exchange earnings. The same applies to changes in availability of cargo or the operation of airports and ports, as they aff ect the cost and volume of goods shipped. Changes in consumer behavior, including under confi nement conditions or otherwise, have similar consequences.