Rabat – A coronavirus recession seizes France, Spain and the United States. As governments release second quarter annual reports, countries’ gross domestic product (GDP) figures are showing record lows.
After two successive quarters of declining GDP, resulting from a decline in trade and industrial activity, economists report a coronavirus recession.
Economists attribute the plunge to the cessation of non-essential activities and stay-at-home orders imposed to curb the spread of COVID-19.
According to the National Institute of Statistics and Economic Studies (INSEE), France experienced its largest decline in economic activity since 1949. The country’s GDP plunged 13.8% from the first quarter.
Likewise, the National Institute of Statistics (OTHER) reports that Spain’s GDP fell by 18.5%. By the end of 2020, the Spanish government expects the overall decline to be 9.2%. However, the Bank of Spain estimates a wider spread of 15%.
While Spain and France are both reporting alarming lows, the United States is seeing the most significant impact with a staggering 32.9% annual rate drop in the second quarter of 2020.
The sharp and dramatic fall of the United States comes amid an increase in COVID-19 cases and the looming threat of enhanced lockdown measures.
The three countries are banking on stimulus packages, stimulus funds and the easing of foreclosure restrictions to get them out of their financial crises.
However, the precariousness of the public health crisis and the possibility of a new wave of foreclosure measures make it difficult to determine whether or not economies will continue to plunge into the crisis. coronavirus recession.