The latest Beacon Economics report shows the pandemic will be a continual drag on the California economy, along with the rest of the world, until a vaccine is in wide circulation.
September merchandise exports saw a 10% decline from the year before, with agricultural products and raw materials off by 8%. The firm attributed the numbers to the resurgent wave of COVID-19 in other parts of the U.S. and abroad.
“We will continue to face these economic headwinds until the virus is brought under control,” said Beacon Research Manager Taner Osman.
Logistical snags held up exports as well. Importers have been warehousing “an enormous surge” of inbound shipping containers rather than make them available for exporters.
Looking at the election, the report notes that a Trump victory “may only embolden his resolve to govern without constraint.” Biden, on the other hand, would “be checked by a hostile Senate and would lack a compelling mandate to initiate action on a wide range of policy fronts.” This includes improving relations with China and other trading partners and rolling out a national infrastructure program.