State Exports Take a Hit in 2020; COVID Drives 15% Drop

“Consumer demand sharply increased for particular goods, while others experienced dramatic drops,” in 2020, largely attributable to COVID-19, according to an analysis of state exports highlighted in the June issue of the Connecticut Economic Digest. The impact of the pandemic was evident in the state’s export numbers.

Overall, Connecticut’s commodity exports dropped 15.03% to $13.8 billion, after reaching a robust $16.24 billion in 2019.

The vast majority of the state’s export industry sectors experienced decreases, with the notable exception being, unsurprisingly, explained Laura Jaworski of the Office of International and Domestic Business Development in the state Department of Economic and Community Development.

"COVID-19 had far-reaching impacts on commerce in 2020, resulting in economic disruptions, production issues, and reductions in supply and demand," the analysis pointed out.  “Extraordinary levels of uncertainty caused consumers to hold off on big ticket purchases and durables.”

The report also noted that Connecticut exports were markedly decreased among its trade partner countries, although the composition of the leading recipients of Connecticut-made goods remained unchanged.

“State exports of medicaments, pharmaceutical goods, bandages, immunological products experienced sharp increases, while the state’s historically strong export sectors dropped, including aircraft parts, industrial machinery, electrical machinery – much of this related to COVID-19’s reverberations throughout the aviation industry, travel limits and global border shutdowns.”

The state’s top ten commodity export destinations were Germany, Canada, the United Kingdom, China, France, the Netherlands, Mexico, Singapore, South Korea and Japan. With the sole exception of the Netherlands, exports across these markets were down significantly, ranging from decreases of 1% to over 50% in 2020.

France, a major importer of aerospace parts and components, posted the largest decline among Connecticut's top markets, with exports to that country falling 52%. Exports to Germany, Connecticut's top international market, fell 14%, with Canada (-14%), the United Kingdom (-20%), China (-13%), and France rounding out the top five markets.

In 2020, Connecticut retained its 28th rank in the U.S. in state-by-state exports. Texas, California, New York, Louisiana, and Illinois were the top five export states in 2020, ranked in terms of export commodity dollars. Most states experienced export commodity decreases in 2020. In New England in 2020, only Massachusetts’ exports value ranked higher than Connecticut’s.

Across the region, the top five export commodities were (1) industrial machinery, including computers; (2) optic, photo, medical or surgical instruments; (3) electric machinery, sound equipment, TV equipment, parts; (4) aircraft, spacecraft, and parts thereof; (5) natural or cultured pearls, precious stones, precious metal clad materials, imitation jewelry and coins.