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The containment measures taken by the French government to contain the coronavirus have had a disastrous effect on the economy. In the second quarter of 2020, the gross domestic product (GDP) shows a historic recession of -13.8%, succeeding -5.9% recorded in the first quarter of 2020. Never the National Institute of Statistics and Economic Studies (Insee ) has experienced such a severe recession.
All areas of the economy were affected, starting with exports, down -25.5%, imports (-17.3%), household consumption expenditure fell (-11%). Gross fixed capital formation (GFCF) shows a negative performance of -18%. Clearly, President Emmanuel Macron has his work cut out for him two years from the French presidential elections.
Despite its harsh character, this result is less bad than expected. Analysts on average expected a contraction of 15.3% of GDP and in mid-June and INSEE had mentioned a forecast of -17%. “The decline in GDP is a less severe figure than expected. It proves that we are not powerless in the face of the crisis, ”explained Bruno Le Maire, Minister of the Economy, Finance and Recovery on CNEWS, hoping that there is no second wave of the pandemic. .
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