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…

Coronavirus: more than 2 billion dollars for African SMEs

The African Guarantee Fund estimates that the continent’s small and medium-sized businesses will lose approximately $ 30 billion in 2020.
 
Coronavirus: more than 2 billion dollars for African SMEs

The African Guarantee Fund (AGF), a pan-African financial institution created to help small and medium-sized enterprises (SMEs), announced Monday, May 18, the establishment of a fund to finance African SMEs in difficulty due to the coronavirus pandemic.

“AGF's Covid-19 mechanism amounts to $ 1.2 billion in guarantees [€ 1.1 billion], which will allow banks to finance SMEs up to $ 2.4 billion at least for a period of two years, "said a press release.

AGF estimates "between 20 and 40 billion dollars", the loss of turnover for SMEs in Africa in 2020 due to the pandemic. "The consequences of the pandemic will continue to have growing negative effects on SMEs in Africa, both on the supply side and on the demand side," said FĂ©lix Bikpo, Managing Director of AGF. Consequently, we anticipate a deterioration in the solvency of SMEs. This factor is likely to increase the cost of credit to the financial sector, which will certainly increase its reluctance to finance SMEs in the absence of external stimuli. "




The African Guarantee Fund (AGF) is a non-bank financial institution, the objective of which is to promote the economic development of the continent, increase job creation and reduce poverty there by providing financial institutions with warranty solutions, specifically designed to support SMEs in Africa.

The main donors are the Danish development agencies (Danida), Spain (Aecid), France (AFD), Germany (KFW) and the African Development Bank (ADB).