The International Monetary Fund has warned the world is facing the worst recession since the Great Depression of the 1930s. The global economy has changed dramatically in the past 90 years, so what does a deep recession look like in 2020? Policymakers are doing their best to limit the impact of lockdown measures, but when can a recovery start, and what state will the economy be in a year from now? We speak to Ludovic Subran, Chief Economist at Allianz & Euler Hermes.
The French economy has officially fallen into recession, after a record contraction of 5.8 percent in the first three months of the year. The drop in quarterly economic output is the worst since records began in 1949. The national statistics agency Insee also reported that consumer spending plunged by almost 18 percent in March, while business investment and output from the construction and manufacturing industries also fell. The pandemic has hit economies across Europe, with new figures showing the eurozone registered a record drop in growth of 3.8 percent in the first quarter.
South Africa slips into recession for the second time in two years - we tell you more. Meanwhile, in Nigeria, motorcycle and tricycle taxis have been banned in Lagos. Drivers are suffering from the impact it has had on their lives. Finally, we hear from South African designer and 2019 LVMH prize winner Thebe Magugu. He's now exhibiting his creations at his first Paris Fashion Week.
Nigeria inflation has slowed after the country exited a recession which made importation expensive, but food inflation has remained high. Nigeria has since August partially closed land borders to halt trade amid a crackdown on smuggling, but the move is expected to push up prices.