French economy to contract by 11 pct in 2020
Source: Xinhua | 2020-10-31
The French economy is expected to contract by 11 percent in 2020, worse than the previous estimate of 10 percent, as a second national lockdown to stem the second wave of coronavirus epidemic paralyses some businesses, Economy and Finance Minister Bruno Le Maire said on Friday.
"We are going to have a fourth quarter which will be difficult, obviously. We are confined, the French economy will turn less strong than usual," said Le Maire in an interview with France Inter radio.
France on Friday went back into nationwide confinement to stem the rapid spread of coronavirus. All non-essential businesses, including catering and events sectors, should shut down until at least Dec. 1, leading to 15 percent cut in the country's economic activities.
However, the minister was upbeat about the potential of growth recovery next year, citing the good post-lockdown performance in the third quarter.
"The French economy recorded a strong rebound in the third quarter. That means our measures to support businesses and employees are working. By continuing this supportive economic policy, we will find strong and considerable growth from 2021," he said.
In its quarterly outlook released on Friday, the national statistics institute INSEE reported an 18.2-percent growth in gross domestic product in the third quarter, above an initial estimate of 17 percent.
The better-than-expected result stemmed from a sharp improvement in investment and household consumption, the country's main growth engines. The respective figures jumped by 23.3 percent and 17.3 percent after they had declined by 14.3 percent and 11.6 percent in the second quarter.
Busiunion
Busiunion