French economy is forecast to contract 11%

French economy is forecast to contract 11%

French economy to shrink record 11% this year after ‘brutal’ coronavirus shock

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The French economy is expected to shrink a record 11 percent this year because of the coronavirus crisis, which is worse than the government’s previous forecast of an 8 percent contraction, Finance Minister Bruno Le Maire said Tuesday.\n\nSubscribe to France 24 now:\n\n\nFRANCE 24 live news stream: all the latest news 24/7\n\n\nVisit our website:\n\n\nSubscribe to our YouTube channel:\n\n\nLike us on Facebook:\n\n\nFollow us on Twitter:\n
French economy is forecast to contract 11%

French economy is forecast to contract 11%

The French economy is forecast to contract 11% this year due to the effects of the pandemic, with many difficult months of recovery ahead of the country, said French Finance Minister Bruno Le Maire..

France introduced some of the toughest quarantine measures in Europe in mid-March and only began lifting restrictions on May 11. Cafes, bars and restaurants are already open, but operate with extreme caution.

«We took effective measures to protect the health of the French people, but the country’s economy practically stalled for three months. This will have to pay with a reduction in GDP», – said Bruno Le Maire in an interview with RTL radio.

The expected contraction of the economy grew from 8% to 11%.

The finance minister also said that more than 300,000 cafes, bars and restaurants will continue to receive government support until at least the end of the year..

«Even though food service establishments have opened, the hardest part of the segment’s revival is still ahead. I mean both socially and economically», – he said.

The government is trying to stave off a string of retail bankruptcies by looking for buyers for the Camaieu, Conforama and La Halle brands, which employ thousands of people.

The government has also already announced sectoral plans to support the tourism and auto industries.. Measures for the aerospace industry are being prepared next week, followed by the announcement of the stimulus package for the construction sector.