Around the world, countries are experiencing record-breaking GDP declines, indicating recessions in the time of COVID-19.
Rabat – A coronavirus recession is gripping France, Spain, and the United States. As governments release second quarter annual reports, the countries’ Gross Domestic Product (GDP) figures are indicating record-breaking lows.
After two successive quarters of GDP downfall, resulting from a decline in trade and industrial activity, economists are signaling a coronavirus recession.
Economists attribute the plunge to a cessation of non-essential activities and stay-at-home orders enforced to curb the spread of COVID-19.
According to the National Institute of Statistics and Economic Studies (INSEE), France experienced its largest dip in economic activity since 1949. The country’s GDP plunged 13.8% compared to the first quarter.
Similarly, the National Institute of Statistics (INE) reports that Spain’s GDP sunk by 18.5%. By the end of 2020, the Spanish government expects the overall decline to stand at 9.2%. However, the Bank of Spain estimates a wider gap of 15%.
While Spain and France both report alarming lows, the United States sees the most significant impact with a staggering annual rate decline of 32.9% in the second quarter of 2020.
The US’ sharp and dramatic fall comes amid a rise in COVID-19 cases and the looming threat of reinforced lockdown measures.
The three countries are banking on stimulus packages, recovery funds, and eased lockdown restrictions to leverage them out of their financial crises.
However, the precarity of the public health crisis and the possibility of another wave of lockdown measures makes it difficult to determine whether or not the economies will continue to plunge into the coronavirus recession.