The World Economy Facing A Historic Fall

The euro zone recorded a 12.1% drop in GDP in the second quarter, as a result of containment measures. In the United States, containment resulted in a 32.9% GDP collapse.

The world economy is recording a historic plunge, with a sharp fall in the GDP of the euro zone and the United States in recession, due to the coronavirus “whose effects will be felt for decades”, according to the chief executive of the World Health Organization (WHO). Faced with a pandemic that nothing seems to be abl. World economic statistics make you dizzy.

The euro area recorded a 12.1% drop in GDP in the second quarter, as a result of containment measures, the European Statistics Office announced on Friday. In France, it is 13.8%, in Spain 18.5%, in Germany, the economic engine of Europe, 10.14%.

In the United States, confinement led to a 32.9% GDP collapse over the same period at an annualized rate. Compared to the second quarter of 2019, the decrease is 9.5%. Only encouraging element in this area announced Friday, Canada recorded in May a growth of 4.5% compared to April, after two months of sharp decline.

The pandemic has killed at least 673,909 people around the world, according to a report compiled by AFP from official sources on Friday at 11:00 GMT. The number of cases has exceeded 17 million. By hitting 46,000 dead, Mexico became the third country in terms of coronavirus-related deaths, narrowly ahead of the United Kingdom. The most bereaved by Covid-19 remain the United States, with 153,268 dead, and Brazil (91,263).

“This pandemic is a health crisis like only one per century and its effects will be felt for decades to come,” WHO Director-General Tedros Adhanom Ghebreyesus said at the start of the meeting. Friday. The institution, which declared the global alert on January 30, is criticized for its recommendations deemed late or contradictory.

Faced with the surge in new cases of Covid-19, several countries are stepping up health restrictions. Germany has classified three regions of Spain, particularly affected, as risk zones, which implies a quarantine for returning travelers, unless they present a negative test. In the United Kingdom, the government has decided to postpone for at least two weeks the next phase of deconfinement in England, initially scheduled for Saturday with the reopening of certain public places. In France, the Minister of Health Olivier Véran announced Friday that wearing a mask outdoors could be imposed on Monday in “a number of areas” where the epidemic is on the rise, the summer encouraging festive gatherings in the open air.

Oil companies, aircraft manufacturers, car manufacturers are paying a heavy price for the crisis, with abysmal losses in the second quarter. On Friday, for example, Swedish heavy truck maker Scania confirmed a plan to cut 5,000 jobs worldwide.

On the medical front, a sign of intense competition between states, contracts are multiplying to try to ensure access to a possible vaccine against Covid-19. The latest, the agreement announced Friday between Sanofi and GSK with the United States, for funding over two billion dollars. The French and British laboratories will receive up to 2.1 billion US dollars against the initial supply of 100 million doses to the Americans.

The European Union is not left out: it announced on Friday that it had secured the reservation of 300 million doses of vaccines with Sanofi and GSK for 2021. The amount of this future contract without obligation to purchase has not been disclosed. Japan has meanwhile reached an agreement with the German-American alliance Biontech / Pfizer to secure 120 million doses of their potential vaccine against Covid-19.

 

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The euro zone recorded a 12.1% drop in GDP in the second quarter, as a result of containment measures. In the United States, containment resulted in a 32.9% GDP collapse.

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