France to cut growth forecast for 2021 as Covid-19 strikes again


(Bloomberg) – France’s economic outlook is deteriorating as the latest lockdown aimed at containing the spread of Covid-19 is expected to force the government to lower its forecast for next year.Finance Minister Bruno Le Maire said in an interview with the Sunday newspaper Journal Du Dimanche that he would present a degraded forecast in the next two weeks. The current 2021 budget is based on an 8% growth in gross domestic product.

“The crisis is particularly violent and brutal for a number of sectors, and it will last a long time,” said Le Maire.

A week after the imposition of a new lockdown, the number of Covid-19 cases continues to accelerate in France and hospitals are increasingly called upon to deal with seriously ill patients.

But the restrictions are not as severe as they were in the spring, which has allowed more businesses to continue operating. The government expects economic activity to run at around 85% of its pre-crisis level, instead of as low as 70% during the first lockdown.

The Mayor said that a strong rebound in production and job creation over the summer shows that the French economy can resist.

“Let us remain confident: our economy and our fundamentals are solid,” said Le Maire.

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