France's GDP in first quarter falls by six percent, shows worst result since 1945

Source : 112 Ukraine

This is the economic collapse due to the coronavirus epidemic
18:20, 8 April 2020


France's gross domestic product fell by six percent in the first quarter of 2020; this is due to the Covid-19 coronavirus epidemic, as Le Figaro reports, citing the Bank of France.

It is noted that these are the worst quarterly indicators of the French economy since 1945. According to Insee, France’s GDP has already fallen by 0.1% in the fourth quarter of last year, so France is technically in a recession.

According to the Bank of France, based on a survey of 8,500 companies, their activity was one third (32%) lower than normal in the last two weeks of March.

Related: Number of Covid-19 cases in Kyiv is close to 300; five people died

"We must return to the second quarter of 1968, marked by the May events, in order to detect a quarterly decline in activity of the same order," the bank said. It is reported that the GDP then fell by 5.3%.

The Bank of France estimates that every two weeks of lockdown lead to a 1.5% decrease in annual GDP. But the bank warned that this figure "should not be extrapolated incorrectly," since the intensity of the impact of insulation may change as it is extended.

As we reported before, in 2019, the real gross domestic product (GDP) of Ukraine fell by 0.2% compared to the level in 2018, and reached 3.2%. In 2018, the GDP was 3.4%.

The largest growth was recorded in construction (+23%), which accounted for 2.7% of GDP, while wholesale and retail trade that is the largest share of GDP among industries (13.2%) increased by 3.6%.

Related: National Bank warns Ukrainians of phone scammers offering "financial aid during quarantine"

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