Coronavirus: United Kingdom, facing worst recession on record, sees GDP drop 20.4% in Q2

The UK has seen its economy, hit by the coronavirus crisis, suffer a "record" contraction of 20.4% in the second quarter, and is officially facing its worst recession on record, agency figures show National Statistics (ONS), published Wednesday 12 August. 
Economists consider that a country enters a technical recession when it accumulates two consecutive quarters of contraction in its economy. According to the ONS, most of the contraction, which began to be felt in March, occurred in April, an entire month of containment and almost total cessation of activity in the country, which saw production collapsed by 20%.

With a very early recovery in construction sites and manufacturing activity, gross domestic product (GDP) rebounded in May by 2.4% (revised figure), followed by an acceleration in June (+8.7 %) thanks in particular to the reopening of all shops. This is the biggest contraction in the UK economy since the ONS began these quarterly statistics in 1955, he said…

Argentina defaults for the ninth time in its history

Argentina again defaulted on Friday, May 22, by failing to honor a $ 500 million due date to its creditors. Negotiations for the restructuring of $ 66 billion of its debt continue, however, said in the wake the government of center-left president Alberto Fernandez. The executive said it wanted to reach an agreement with Argentinian bondholders without triggering "default artillery".
 
Argentina defaults for the ninth time in its history

This new default is the ninth in the history of Argentina. In total, the country's debt reaches $ 324 billion, or almost 90% of its Gross Domestic Product (GDP).

Late Thursday evening, the government had already announced to extend for the second time the deadline it had set for restructuring, by designating June 2 as the new deadline. This extension of only ten days seems to show that the Argentine government and its creditors could be close to an agreement, although the new deadline is not necessarily final, as the government said on Thursday.

But if the government indicates that negotiations are on track, the main group of creditors of Argentina demanded however, Friday, "a direct and immediate discussion". "The group welcomes Argentina's expressed intention to work with creditors, but actions speak louder than words. In the past month, Argentina has had virtually no substantive communication with its creditors, "a group of several investment companies, including BlackRock and Fidelity, said in a statement.




In 2001, with a historic default of $ 100 billion, the country had experienced its worst social and economic crisis. Almost twenty years later, Argentina is once again in bad shape: the economy has been in recession for two years, inflation has peaked (53% in 2019) and poverty has continued to climb ( 33% in 2019).

The Covid-19 pandemic also severely slowed economic activity and forced the government to release funds to mitigate its effects on the most vulnerable residents and businesses.