France’s GDP could fall 20%
The National Statistics Institute of France indicated that, despite this situation, the country is showing signs of economic recovery
The French National Statistics Institute (Insee) indicated that France’s Gross Domestic Product (GDP) could contract 20% in the second quarter of the year.
“Assuming that in June the French economy reduces a third of the gap that still separates it from the pre-crisis level, in quarterly terms GDP could fall by around 20% in the second quarter”, the institution stressed.
On the other hand, they stressed that, in case the country can return to normality from July, France could still register a fall in its GDP for 2020 of 8%.
In this way, the Insee assumes that “the general impact of the health crisis in 2020 will be greater than this figure, because the economic recovery, in France and worldwide, will continue to be gradual at best in the second half of the year.”
Today, the French economy is showing signs of a slight recovery in most of its sectors, so the current loss of activity linked to the pandemic would be only 21%, compared to 33% estimated in early May.
France confirmed its entry into technical recession in the first quarter of 2020 with a record drop in GDP of 5.8%, after the 0.1% drop in activity in the last quarter of 2019 as a consequence of the impact of the Grand Seclusion by COVID-19.
K. Tovar
Source: Expansión
