After a sharp decline in the first quarter, France’s economy literally plunged by 13.8 percent in the second quarter compared to the previous quarter. Such a sharp decline has not yet been measured. The reason for this was the strict and ongoing corona protection measures. According to calculations by the Banque de France, the lockdown in March reduced economic activity by around 30 percent and in April by 27 percent compared to a „normal“ week. In the meantime, however, the economy has already reached more than 90 percent of the normal level again.
The initial rapid start of the economic engine was reflected in the usual economic indicators. Industry has already been able to make up a good deal of the decline in production. Incoming orders have also already increased. In addition, consumers are now more willing to spend. Overall, the French economy is recovering, but the momentum currently seems to be losing some of its momentum.
What is causing headaches is the now significantly accelerated incidence of infections in France. In view of the economic losses caused by the lock-down in the first half of the year, the aim is to prevent renewed nationwide containment measures. Anything else would also be an economic catastrophe. Therefore, precautionary measures have recently been stepped up again. But if the virus continues to spread unchecked, the epidemic could stall the recovery.