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…

CEMAC zone: recession could reach 6% according to BEAC

All the indicators are certainly not red. But most of the economic indicators in the six countries of the Economic and Monetary Community of Central Africa (CEMAC) are already found the Monetary Policy Committee (CPM) of the Bank of Central African States (BEAC) at the end of the second annual session on June 24, 2020 in Yaoundé.

recession could reach 6% according to BEAC

Analyzing the situation in Central Africa, it emerges that in the short and medium terms, the CEMAC zone is affected by the health crisis and the fall in the prices of the main export products. "

"In the first half of 2020, the revival of productive activities was slowed down in the sub-region by the disruption of supply circuits for imported products as well as by the restrictive measures adopted by the various governments to contain the effects of the pandemic. Although it is premature for the moment to fully grasp the impact of COVID-19 on national economies, it is already anticipated during this first semester a drop in production as well as a deterioration of public finances and external accounts, "said the Central Bank.

For the year as a whole, the prospects for development will depend on the average price of a barrel of crude oil and the duration and international response to the health crisis.

According to the central scenario, an economic recession of 5.9% is forecast, a slight inflationary rise to 2.5%, that is to say below the Community standard which is 3%, a deterioration in the budgetary balance , commitment base at -6.2% of GDP (Gross domestic product), a significant widening of the current account deficit to 7.3% of GDP and a rate of coverage of the currency which would resell at 55%.




Taking into account the evolution of the health situation, the impact of which is significant on economic activities, the CPM decided to keep unchanged the Interest Rate for Tenders (TIAO) at 3.25%, the Rate of the marginal lending facility at 5.00%, the deposit facility rate at 0.00% and the reserve requirement coefficients at 7.00% on demand liabilities and 4.5% on term liabilities.