A result of the Corona-crisis: Minus 14 per cent – the economic crash in France

The French economy contracted in the second quarter to 13.8 percent. Thus, the second-largest economy in the European Union is likely to have been experienced by the Coronavirus-crisis, a more severe downturn than most other EU countries.

Christian Schubert

economic correspondent in Paris.

at the same time, he is, however, less hard, than experts had previously expected: at the end of may, the national statistics Institute Insee had predicted a decline of 20 percent in June, a decline of 17 advance. Also, the more recent estimates were higher. According to a survey by the news Agency Reuters, Economists had said in the past few days, on average, a reduction of the gross domestic product of 15.3 percent.

Still, the intrusion marks a historic incision. Since Insee carries out its surveys, has recorded the statistics authority does not have such a big Minus. During the student unrest in 1968, it had come in a quarter to a decline of 5.3 percent.

Weak exports

In the Individual are decreased in the second quarter of 2020, exports by 25.5 per cent, the important consumption of the households reported losses of 11 percent, and the investments of the company decreased by 17.8 percent. France's economy suffered from a particularly strict and long curfew as a result of the Corona pandemic.

in addition, economic sectors such as tourism and gastronomy in France a lot of weight. The low point was reached in April, since then it is gradually upward, is reported by the Insee. The statistics expected for the third quarter, a strong recovery: GDP is expected to grow according to his estimates by 19 percent.

Other observers are a little more cautious: The Banque de France expects a Plus of 14 percent, the investment Bank Natixis, with 16 percent. The consulting firm, BCG expects that France "will have the strongest recovery after the crisis in Europe".