According to the document transmitted to the Journal of the Senegalese economy (Lejecos), while many States
were ready to initiate the deconfinement of their population, this movement of relaxation of
physical distancing measures may take longer than expected.
“In the United States, the governor of New York State, who claims more than 20,000 deaths due to
Covid-19, has thus extended the confinement until June 13.
This decision foreshadows an ever more severe economic and social impact on the first
economy of the world.
The latest report on the evolution of retail sales confirms this situation. Indeed, the data indicate
a fall of 16.4% during the month of April, the worst performance for 50 years”, we read in
the press release.
Faced with this situation, the Brvm informs that the President of the Federal Reserve, Jerome Powell, has called for
a new fiscal support plan to limit the economic damage and promote a strong recovery
economy.
Elsewhere in the world, adds the Brvm, Germany has confirmed its entry into recession with a contraction
2.2% of its economy during the first quarter of 2020.
While this development remains better than that of the euro zone as a whole (-3.8%), economists
nevertheless expect an acceleration of the trend in the second quarter, where a 10% decline in GDP is
expected.
For its part, Saudi Arabia suffered the brunt of the collapse in oil prices. The Kingdom has
announced an austerity plan whose main measures will be the tripling of the Value Added Tax
(VAT) as well as the cessation of monthly allowances paid to its citizens.
“At the level of the financial markets, the renewed pessimism induced by the economic figures was reflected
in the performance of stock market indices.
The weekly balance sheet is thus negative on all the stock exchanges, with the exception of Argentina, where
the benchmark index recorded a jump of 9%”, informs the Brvm.