BCEAO releases $ 6 billion for West African economies

The BCEAO has just made a liquidity injection of 3350 billion FCFA ($ 6 billion) at a fixed rate of 2% in favor of several banks of the UMOA. A total of 87 financial institutions participated in the operation. The Central Bank of West African States (BCEAO) made a further injection of liquidity to its member countries last week. In total, 3350 billion FCFA ($ 6 billion) were disbursed by the institution.

During the auction on September 14, 87 banks in the sub-region obtained an injection of liquidity at a fixed rate of 2%. With more than 1000 billion FCFA ($ 1.8 billion), it is the Ivory Coast which obtained the most important financing, ie 31% of the funds injected.

It is followed by Senegal with more than 580 billion FCFA ($ 1 billion), Mali with 466 billion FCFA (835 million $), Benin with 434.5 billion FCFA (777 million $) and Burkina Faso with 318 billion FCFA. ($ 569 million). Niger with 241.6 billion FCFA ($ 432 million), Togo with 219 billion FCFA (…

Hard blow, but rapid rebound for the Montreal economy

The shock inflicted on the Montreal economy by the coronavirus pandemic will be hard, but short-lived, estimates its metropolitan authority. It could even serve to reveal its shortcomings and offer the chance to tackle them once the crisis is over. A relatively diversified service economy, with a good manufacturing sector and many high value-added jobs, the greater Montreal region will see its total number of jobs fall by 4.8% over the next three months, the equivalent of '' just over 105,000 jobs, estimates an economic note released Wednesday by the Montreal Metropolitan Community (CMM), the organization that brings together its 82 municipalities from the administrative regions of Montreal, Laval, Lanaudière, Laurentides and Montérégie.

Hard blow, but rapid rebound for the Montreal economy

Accounting for almost 30% of jobs in Greater Montreal, services that require direct personal contact, such as retail trade, passenger transportation, real estate services and the arts and entertainment, will be severely hit by the fear of the pandemic and containment rules with losses of more than 13%. The manufacturing sector, including the aeronautics sector, is also expected to be hit hard (9.7%). Conversely, jobs in public and parapublic services are expected to increase (4.3%), with demand, in particular, for health care personnel.

Fortunately, this shock in the second quarter of the year should quickly be followed by a rebound in the following quarter (+ 4.7%), once the situation has returned to control, so that the year ends with a much more modest total job loss of 0.8%, or 18,000 jobs.

Based, among other things, on the most recent economic forecasts from experts, data reported by Montreal industrial associations, as well as on the case of the SARS epidemic in Hong Kong in 2003, this scenario could prove to be too optimistic, especially if the pandemic had to have a second wave or that the commercial partners of Montreal companies (United States, France, United Kingdom…) were taking longer to recover. In this case, job losses for the year could amount to 3.5%, or 77,000 jobs, and will only continue to fade much more slowly.

"We also don't know how people will react when the health situation begins to improve," Sylvain Giguère, CMM chief economist, said in a telephone interview. Will they rush into shops, restaurants and concert halls or, on the contrary, will they remain hesitant? "

The situation would be worse, however, had it not been for the massive emergency aid provided so far by governments.

The question is of importance for all of Quebec, underlines the CMM, Greater Montreal, and its 4.1 million inhabitants, accounting for half of its population and three-quarters of all its new jobs created since 2010, in one reason for one of the strongest economic growth in the country.
The current crisis could also have another effect, more positive this time, argues Sylvain Giguère, which is to act as a revealer of certain fundamental problems that have hampered the economic development of the metropolis for a long time. We bet, for example, that many Montreal companies are now falling far behind in terms of teleworking, online commerce and, more generally, the use of digital technologies and automation. All these young workers who interrupted their studies a little too quickly because jobs were plentiful, may now realize the advantage that would acquire them with the acquisition of additional skills, making it easier for them to retrain. '' access better working conditions.

While developing their next Metropolitan Economic Development Plan (PMDE), CMM members will seek the best long-term ways to catch up in terms of productivity, training and use of the workforce, innovation and adoption of new technologies. But in the shorter term, they will have to closely monitor several issues likely to hinder the end of the crisis, explains Sylvain Giguère. Among them, there will be contracts and foreign customers that Montreal companies will have lost in the adventure. There will also be their level of debt after all his weeks without income. There will also be the ability of businesses and utilities to resume operations in a safe and reassuring manner in a world from which COVID-19 may not leave for some time.