The French economy will be shrinking again in the fourth quarter due to the reintroduction of lockdown measures against the rising coronavirus. That’s what the French statistical office Insee reported.
In the best-case scenario, where the restrictions end on 1 December and economic activity picks up strongly again, a quarter-on-quarter contraction of 2.5 percent is expected. If the pandemic continues and economic activity does not improve, the decline can be 6%, says Insee. For the whole of 2020, the bureau is counting on a 9% to 10% reduction in the French economy.
“The second wave of Coronation and the renewed curtailment of the population have damaged the recovery and changed the pace of the crisis,” says the statistics office. According to Insee, the impact of the virus outbreak is now less significant than earlier this year because the lockdowns are less strict and more companies can remain open due to additional health measures. The catering industry in France can still be closed until mid-January, as was known earlier in the day.