The contraction of the French economy slightly less than expected

A worker at the Rafaut factory, an equipment supplier to the French Ministry of Defense and the main civil aviation companies, in Villeneuve-la-Garenne near Paris, June 17, 2020. REUTERS / Charles Platiau

Text by: RFI Follow

This is what emerges from the latest projections published this Wednesday by INSEE, the National Institute of Statistics and Economic Studies, which estimates a fall in GDP of 17% in the second quarter of the current year, against 20%, during its previous estimate in late May.

Publicity

Read more

It remains catastrophic, but it could be a little less than expected. Suddenly, the new estimate of the fall in French gross domestic product almost looks like good news.

17% instead of 20%, national wealth will collapse well in the second quarter, but INSEE observes a recovery "  very clear since mid-May  ", and which should continue in June.

The activity had dropped by almost 30% in April, compared to a "normal" period - without coronavirus - and 22% in May. But in June, according to INSEE, it will only be reduced - if you can say - by 12%.

The business services sector performed better than expected; construction, industry and market services are also cited by INSEE, which states that the recovery in activity could affect "  all branches of the economy  ".

The new phase of deconfinement , with the easing of restrictions for bars and restaurants in Ile de France, and the expansion of reception in educational establishments, could further accelerate the recovery. This is, moreover, its objective.

INSEE specifies, as an obvious fact to remember, that this recovery will also depend on an international context still uncertain, and the duration of health protocols implemented in companies.

► Also to listen: What recovery and what consequences after the Covid-19 pandemic?

Newsletter Receive all international news directly in your mailbox

I subscribe

Follow all international news by downloading the RFI application

google-play-badge_FR

  • France
  • Economy
  • Finance

On the same subject

Deconfinement, racism ... What to remember from Emmanuel Macron's speech

PSA group refuses to bring Polish workers to France

In France, the government anticipates the loss of 800,000 jobs