Forex News

France central bank expects 6% contraction in Q1

France central bank expects 6% contraction in Q1

The French central bank estimated on Wednesday that the French economy is likely to contract by up to 6 percent in the first quarter of this year on the back of the closure measures imposed on the country to cope with the rapid spread of the coronavirus.

This will be the biggest quarterly contraction since the beginning of World War II, surpassing the previous record of 5.3 percent during the second quarter of 1968 when France suffered massive student protests.

It should be noted that the French economy has adhered to the closure and quarantine measures since March 17, which are due to officially expire on April 15, despite the French government's warning that the period could be extended if necessary.

In its analysis of the economic repercussions of the spread of the coronavirus on France, the central bank commented that the quarantine measures adopted in France for only a week led to a drop in economic activity by about a third.

The French government launched a €45 billion stimulus package earlier last month, following the suit of major central banks in an attempt to slow down the shock of economies due to the severe slowdown in economic activity following the rapid outbreak of the Covid-19.

Moreover, France ranks fourth after Italy in terms of the total number of people infected with Covid-19, where the number of confirmed cases today reached 109069 cases, while the number of deaths soared to 10,328 cases.

Share Article