June 10, 2020
France will likely lose “almost a million” jobs this year, Local France reports citing a forecast from the Banque de France. He predicted that the coronavirus pandemic would see the economy shrink by about 10% over the same period. At the same time, unemployment is expected to exceed 11.5% in mid-2021, adding that the economy will not return to pre-crisis levels until mid-2022. Forecasts are in line with government forecasts for a 11% GDP contraction this year as the country prepares for its worst recession since World War II. Hard hit by the coronavirus pandemic, France imposed a nationwide strict lockdown from mid-March to mid-May, putting the country’s economy virtually stalled for two months. The bank said the economy should then grow 7% in 2021, gaining another 4% in 2022. The outlook remains dependent on many uncertainties, the bank said. “It is likely that the expected increase in unemployment and the highly uncertain global environment will continue to weigh on consumer confidence,” said the bank.