Covid-19: France records a historic recession in 2020
The French economy sank in 2020. According to an initial estimate from INSEE, the GDP plunged by 8.3%.
GDP fell in the last quarter, but only 1.3%, so we are very far from -13.7% in the second quarter (illustrative image).
ERIC PIERMONT / AFP
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The French economy sank in 2020. The country recorded a historic recession last year against the backdrop of the Covid-19 crisis.
According to an initial estimate from INSEE, the GDP plunged by 8.3%.
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GDP plunged by 8.3% but despite this staggering figure, it is a little better than expected than the -9% previously anticipated by Insee and the Banque de France and much better than the -11% forecast by the government, although he admitted to being cautious.
In fact, the economy weathered the
November lockdown
better
than most economists expected.
GDP did decline in the last quarter, but only 1.3%.
We are therefore very far from the -13.7% of the second quarter.
This better performance is due, according to an economist from Euler Hermes, to the resilience of private and especially public investment.
This notably supported construction.
The fact that schools remained open also allowed parents to work and the economy to run.
Figures in the red but a "rebound capacity of France"
Generally speaking, all the figures are in the red, from consumption to production, from exports to imports, although in different proportions.
For the Minister of the Economy, the figures unveiled by INSEE confirm “
the unprecedented shock
”, but also show “France's
ability to rebound
”.
A rebound that may not reach the 6% expected in 2021.
An economist from Rexecode expects a first half weighed down by the
likely tightening of health measures
.
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To read: Covid-19: how to avoid economic collapse?
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