global economy

France economy may contract in Q4 2020 – minister

Agence France-Presse
France economy may contract in Q4 2020 – minister

People gather on a terrace in Biarritz, France, on October 21, 2020. - France will place more regions on the highest health alert level as coronavirus infections continue to spread fast, the government's spokesman said on October 21, 2020. (Photo by GAIZKA IROZ / AFP)


The risk of negative growth in the 4th quarter is already factored into the French government's overall forecast for a contraction in 2020 gross domestic product

France’s economy could shrink again in the final 3 months of this year as a result of the widespread curfews imposed by the government to rein in a second wave of the coronavirus, Economy Minister Bruno Le Maire warned on Friday, October 23.

“In the 4th quarter, we risk seeing a negative growth rate,” Le Maire told Europe 1 radio. 

“But in the same way, I can say that the French economy will see a strong rebound in 2021” and that growth will return to 2019 levels in 2022, the minister said. 

The renewed contraction, coming after many leading economies were pushed into unprecedented recessions by the worldwide lockdowns earlier in the pandemic, “is no surprise,” Le Maire said.

The risk of negative growth at the year-end had been factored into the government’s overall forecast for a contraction in gross domestic product for the whole of 2020, he explained.

“We knew that the pandemic could start up again and because there is a lot of international uncertainty,” the minister said.

The day before, Prime Minister Jean Castex had said that curfews initially planned for 9 major cities including Paris would be extended to cover as many as 54 different departments across the country, affecting 46 million people in all.

At the same time, the premier also announced that economic support packages would similarly be extended. –

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