historical collapse of GDP during the second quarter in France

INSEE said on Friday that France recorded a historic rise of 13.8% of its gross domestic product in the second quarter due to the Covid-19 epidemic.

The National Institute of Statistics (INSEE) had never registered such a collapse, France recorded a historical depth of 13.8% of its gross domestic product in the second quarter due to the coronavirus epidemic, announced on Friday, July 31. The institute also revised its activity measure during the first quarter, which fell by 5.9%, instead of the 5.3% previously reported.

However, the decline in activity during the second quarter is smaller than most analysts and INSEE itself expected, which still estimated it at 17% in June.

“It is an expected figure, it is a serious figure, but it is a less serious figure than expected,” the French Minister of Economy, Finance and Recovery told CNEWS.

“If today we have growth figures that are a little less bad than expected, it is proof that political action, public political decision, is effective,” he added, emphasizing that the government was “completely determined to do everything (.. .) to accelerate the national economic recovery and create the jobs that come with it “.

“Gradual recovery”

In detail, household consumption, the main component of growth, fell by 11%, investment by 17.8% and exports by 25.5%.

“The negative development of GDP in the first half of 2020 is linked to the cessation of ‘non-essential’ activities in connection with the containment set up between mid-March and early May,” the institute explains in a press release.

“The gradual abolition of restrictions led to a gradual recovery in economic activity in May and since June, following the low point reached in April,” INSEE continues.

The largest quarterly decline in GDP before the coronavirus crisis was recorded in the second quarter of 1968 was affected by the general strike in May, but was followed by a rebound of + 8% during the summer.

The rise should be all the stronger this time because the tumult was meaningless: INSEE forecast + 19% for the third quarter, Natixis + 16% and Banque de France + 14%.

With AFP