France Forecasts -8% Economic Growth This Year... COVID-19 Movement Restrictions Extended by One Month

[Asia Economy Reporter Son Sun-hee] The French government has revised its economic growth forecast for this year downward to -8% due to the impact of the novel coronavirus disease (COVID-19) pandemic.

Bruno Le Maire, France's Minister of Economy and Finance, appeared on a broadcast on the 14th (local time) and announced that the GDP growth rate for this year was calculated at -8% in the budget plan for next year to be released this week. Minister Le Maire had previously presented an economic growth rate of -6% in an interview with an economic daily just five days earlier on the 9th, lowering the forecast by 2 percentage points.

This figure is analyzed to reflect the decision to extend the movement restriction order by an additional month to curb the spread of COVID-19 in France. President Emmanuel Macron announced in a national TV address the day before that the current movement restriction order will be extended until May 11.

France also experienced a -6% contraction in growth in the first quarter compared to the same period last year. This marks two consecutive quarters of negative growth following the previous quarter's -0.1%.

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