France sinks deeper into recession as its GDP shrinks 14% in Q2

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France is doing less well than Germany, Europe’s largest economy, which on Thursday announced a 10.1% drop in GDP during the April-June period as its exports and business investment declined. are collapsed.

In March, the health crisis prompted the French government to introduce what was one of the strictest lockdowns in Europe, halting much of activity in the second-largest economy in countries using the euro. In France, COVID-19 has now killed more than 30,000 people and infected more than 186,000.

In publishing its gloomy figures on Friday, INSEE indicated that the economic low point was in April, when only workers deemed essential were able to leave their homes. Activity started to pick up again from May as authorities began to ease lockdown restrictions, INSEE added.

Insee figures show that the construction sector is among the hardest hit, the sites being inactive, the workers being forced to stay at home.

Locked-in families, many of whom survive thanks to government aid and job preservation programs, have tightened their purse strings: INSEE reported an 11% drop in household spending in April-June , after a drop of 5.8% in the first quarter.

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