A Parisian store during lockdown
PARIS, April 9 (NNN-AGENCIES) — France has entered into a recession as a result of measures to stem the spread of coronavirus, the country’s national bank said.
The French economy shrank by six per cent in the first quarter of 2020, according to initial Banque de France estimates published on Wednesday.
GDP already shrank by 0.1 per cent in the last quarter of 2019 in the eurozone’s second largest economy, according to the nation’s statistics office.
Economists talk of a country entering into a recession when the economy shrinks for two quarters in a row. Ahead of the outbreak of the current crisis, France’s economy had been forecast slight growth of 0.1 per cent for the first quarter of 2020.
However, in light of the pandemic, the French Government is now bracing itself for the nation’s worst recession since 1945.
French Finance Minister Bruno Le-Maire has said he expects the current crisis to exceed that of the 2009 financial crisis when the economy of the highly-indebted country shrank by 2.9 per cent, at the time of the most severe contraction since the end of World War II.
France has, for the past three weeks, imposed strict lockdown measures on its population, with many economic sectors facing severe limitations on their activities.
France on Wednesday reported 541 more deaths from COVID-19 in hospital over the last 24 hours, bringing its total official toll from the coronavirus epidemic to 10,869.
Top health official Jerome Salomon told reporters that there were now 7,148 people in intensive care, a net increase of 17 from the day earlier, the lowest increase recorded in recent weeks.
France has been in lockdown since March 17 in a bid to slow the spread of the epidemic, with only essential trips allowed that must be justified with a signed piece of paper.
Salomon said that had been slowing the increase of the virus’ spread over recent days, adding this was because the lockdown was being largely observed.
“The slowing seen over the last days is linked to your good respect of the confinement rules,” he said.
He expressed hope that France would see a flattening in its curve of cases in coming days but emphasised that this “plateau is at a very high level.” — NNN-AGENCIES
