France’s GDP could drop by around 20% in the second quarter

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The French economy could contract by around 20% in the second quarter, as the foreclosure measures should slow the spread of coronavirus activity, the national statistics agency INSEE announced today.

He said the French economy was currently operating “around four-fifths of its pre-crisis level”, up from two-thirds during the shutdown.

INSEE also said activity resumed “cautiously” after the easing of the lockdowns on May 11 and consumer spending rebounded.

Nonetheless, consumer confidence moved a little further from the sharp drop in April when lockouts were in effect for the entire month.

The INSEE consumer confidence index fell two points to 93 points in May, after falling 8 points the previous month.

The index is calculated so that 100 is the long-term average.

“Households show marked pessimism regarding the economic situation in France,” said INSEE.

In contrast, the business confidence index increased slightly, reaching 59 points, after reaching 53 revised points in April, the lowest level ever recorded since INSEE began to calculate the index in 1980.

“The indicators for future activity have stopped plunging, but statements about the outlook remain bleak,” the agency added.



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