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…

Uemoa: Decline in economic activity in the first quarter of 2020

According to the Bceao's "Quarterly Statistics Bulletin, first quarter 2020", a drop in economic activity is noted. "The pace of economic activity in Uemoa dropped in the first quarter of 2020, against the backdrop of the health crisis linked to Covid-19. The gross domestic product of the UEMOA increased in the first quarter 2020 of 3.3%, on a year, against 6.0% a quarter earlier, "it reads in the document.

Decline in economic activity in the first quarter of 2020

According to the Bceao, the sharp deceleration in economic activity in the Union is mainly marked by the tertiary sector, whose contribution fell by 1.8 percentage points compared to the previous quarter, to stand at 1 , 8 point. The contribution of the secondary sector stood at 0.7 percentage point, down 0.7 percentage point compared to that recorded a quarter earlier.

The primary sector's contribution to growth was 0.9 percentage points, 0.2 points lower than in the fourth quarter of 2019.

The annual inflation rate in the UEMOA stood at 1.3% at the end of March 2020, after -0.5% three months earlier. The rebound in the general price level is mainly due to the "Food" component, whose contribution to total inflation rose from -0.6 percentage points at the end of December 2019 to 0.8 percentage points at the end of March 2020 .

The increase in food prices is mainly observed in Benin, Ivory Coast, Guinea-Bissau and Senegal, in connection with higher prices for fishery products as well as tubers and plantains, linked to the weakness of supply on the markets. In addition, an increase in the prices of cereal products was recorded in the Sahelian countries, notably in Niger, in connection with the drop in production.

Changes in food prices also reflect the effects of the disruption of distribution channels caused by the Covid-19 pandemic.