Corona virus pandemic really hit the joints of the economy. Limitation of activity makes the wheels of the economy stagnate and makes 5 countries fall into the abyss recession.
The following 5 countries have fallen into recession:
1. United States (US)
The US economy contracted in the second quarter from April to June by 32.9%. Citing CNN, Friday (07/30/2020), the Bureau of Economic Analysis noted this was the worst decline in history.
Business stalled during a lockdown in the spring of this year saw the US finally fall into its first recession in 11 years. In just a few months, the longest economic expansion in US history in the last five years was complete.
Recession is defined as a decline in gross domestic product (GDP) or economic growth in two consecutive quarters. In the previous quarter (January to March), US GDP was minus 5%.
The German economy in the second quarter of 2020 experienced a contraction of -10.1%. The report indicates the German economy is in a ravine recession.
Quoting Reuters, the decline in the German economy by -10.1% was due to a decrease in household consumption, business investment and exports. All of that is the impact of the COVID-19 pandemic.
In the first quarter of 2020 the German economy has also been corrected -2.2%. That means the German economy is officially recession.
3. Hong Kong
Hong Kong officially recession for a full year. Its economy is hard to recover amid the Corona pandemic.
The country, which became the Asian hub, shrank 9% in the second quarter of 2020 (April-June) compared to the previous year’s position.
This is the fourth time that Hong Kong has recorded a minus economy. This means that for a full year Hong Kong’s economy has not grown.
Singapore’s economy entered a recession in the second quarter of 2020. The Lion’s economy contracted 41.2% affected by the Corona virus.
In the first quarter of 2020, Singapore’s economic growth also contracted by 2.2% yoy which was also caused by the spread of COVID-19.
5. South Korea
South Korea (South Korea) also overtook Singapore to become a country whose economy officially fell into the abyss recession. This condition is marked by the shrinking South Korean economy in the second quarter of 2020.
The Bank of Korea said the South Korean economy shrank by -3.3%. It was the sharpest contraction since the first quarter of 1998. The figure was also deeper than the Reuters poll estimated at -2.3%. In the first quarter of 2020 the South Korean economy was -1.4%.
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(Ara / DNA)