Coronavirus pushes world's leading economies into record slumps

Second-quarter contractions show recessions in all major economies except China; eurozone, Israel’s major trading partner, sees GDP plunge 12.1% in three months

PARIS, France — The coronavirus pandemic pushed most of the world’s major economies into unprecedented contractions in the second quarter, except for China which escaped a recession.

Here are second-quarter changes in gross domestic product (GDP) compared to the previous quarter for the world’s top economies. Unless stated otherwise, the figures are from the national statistics institutes.

Japan

Japan announced in mid-May that it was already in recession — two consecutive quarters of contraction — when first-quarter GDP slid by 0.6 percent after a 1.9% drop in the final quarter of 2019.

On Monday the world’s number three economy recorded a further slump of 7.8% in the April-June quarter, its worst on record, as the coronavirus deepens the country’s long-running economic woes.

People wearing face masks to protect against the spread of the new coronavirus walk toward the entrance to Tokyo Disneyland in Urayasu, near Tokyo, July 1, 2020. (Koji Sasahara/AP)

Britain

The UK suffered the worst recession in Europe in the first two quarters of the year, also recording the continent’s highest number of coronavirus deaths. GDP fell 20.4% in the second quarter after a 2.2% drop in the first.

Germany

Europe’s top economy was hit less hard by the coronavirus than its neighbors, but still saw its GDP fall by 10.1% in the second quarter after a decline of 2% in the first.

Germany’s previous record for a quarterly GDP drop was 4.7% in the first quarter of 2009, after the financial crisis of 2008.

People wearing protective masks line up to go in a garden store in Munich, Germany, April 20, 2020. (AP Photo/Matthias Schrader)

France

The eurozone’s number two economy was in a longer and stricter lockdown than its eastern neighbor, and second-quarter GDP fell more steeply, by 13.8%, after a drop of 5.9% in the previous three months.

France’s previous all-time worst quarterly blow to output was dealt by a general strike in May 1968.

Italy

Italy’s growth was impacted very early on by the coronavirus which hit its richest region, Lombardy, particularly hard. Italian GDP fell by 5.4% in the first quarter and then by 12.4% in the second.

Spain

After a 5.2% drop in the first quarter, Spain’s economy contracted a further 18.5% in the second, notably because of a 60% drop in tourism income and a fall by one-third in exports.

Eurozone

The eurozone’s overall GDP plunged 12.1% in the three months to June, after 3.6% in the first quarter, making the second quarter downturn “by far” the worst since statistics agency Eurostat started compiling growth data for the area in 1995. The eurozone collectively is Israel’s major trading partner.

United States

The United States, the world’s top economy, suffered a 9.5% slump in the second quarter following a 1.3% drop in the first, according to figures published by the OECD.

In this July 14, 2020, photo, people wait in line for coronavirus testing at Dodger Stadium in Los Angeles (AP Photo/Mark J. Terrill)

The US government also publishes annualized figures (-32.9% in the second quarter), a method that is not comparable with most other countries.

China

China, the world’s second-largest economy, may have been where the novel coronavirus originated, but thanks to strict lockdown measures it was able to largely halt the spread of the virus and reopen factories, thus avoiding a recession.

In the second quarter its economy rebounded by 11.5%, having fallen by 10% in the first quarter. Still, growth for this year will be well below the breakneck rates China has seen in recent years.

Times of Israel staff contributed to this report.