Policy Article

The Impact of the COVID-19 Pandemic on the Global Economy —Survey-based Evidence from Free Zones

Kiel Policy Briefs, 139 Download

In cooperation with the World Free Zones Organization, the IfW Kiel has conducted a survey among special economic zones on the impairment of their economic activities by COVID-19. The survey reveals that the vast majority of the Free Zones have already been noticeably affected and that the impact of the pandemic is expected to increase in the coming months. The authors show that COVID-19 is affecting Free Zones through various channels, in particular through its own measures to slow the epidemic, through the global decline in demand, through disruptions in value chains, and through a deterioration in financial conditions. From a regionally disaggregated view the weight of the individual channels is described.