Figures released by the French National Statistical Office (INSEE) on September 8 show the background French economy which has fallen into serious recession due to the pandemic COVID-19 It is on track to recover as the blockade measures are lifted, but will remain down all year.
According to INSEE, after a record reduction of 13.8% in the second quarter of 2020, France’s GDP will increase by 17% in the third quarter of 2020. INSEE said it kept its forecast for the country’s economy to fall 9% this year, while the unemployment rate rose.
INSEE said that the unemployment rate in France could rise to 9.5% by the end of this year, up 1.4 percentage points from the end of last year. About 715,000 workers in the country lost their jobs in the first half of the year alone.
According to INSEE, whether the loosening Blockade measures Being able to spur a relatively rapid spurt of sectors, the French economy is recovering from the summer shock as an engine that both accelerates and brakes.
The head of INSEE’s macroeconomics division, Julien Pouget, said that the country’s economy was braked by the health crisis and driven by economic policies to provide massive emergency assistance. and the implementation of the rehabilitation plan.
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INSEE believes that there is a risk of a demand shock, as consumer spending and confidence in households are said to remain below pre-outbreak levels. Therefore, the speed economic recovery from now until the end of the year won’t be fast
Many companies are back to normal, Pouget said, but areas that were hit hard are still facing the biggest challenges due to the pandemic. Transportation, hospitality, and event organization are areas that continue to be in trouble.
The French government still forecasts the economy will drop 11% this year, but Finance Minister Bruno Le Maire said officials are preparing to release less pessimistic figures this month.