France Q2 GDP Falls 13.8%... "Worst Postwar Performance"

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Due to the impact of the novel coronavirus infection (COVID-19), France's economic growth rate in the second quarter plummeted by 14% compared to the previous quarter. As strong lockdown measures were fully implemented from April to June, most economic activities such as consumption, exports, and investment sharply contracted, resulting in the worst performance in over 70 years since statistics began to be compiled.

According to Bloomberg and others on the 31st (local time), the French National Institute of Statistics and Economic Studies (INSEE) announced that real GDP in the second quarter decreased by 13.8% compared to the previous quarter. A foreign media outlet described it as the "worst post-war recession." The decline was more than twice the first quarter GDP growth rate of -5.9% (revised figure). However, it was lower than the expert forecast of 15.2%.

By detailed category, exports fell by 25.5%, suffering the greatest damage, and government investment also decreased by 20%. Due to lockdown measures and movement restrictions preventing visits to restaurants or shops, household consumption decreased by 11% during the second quarter.

Bruno Le Maire, France's Minister of Finance, previously appeared before the parliamentary economic committee earlier this week and said, "I wish I could say we have passed the peak. But that is not the case. The worst situation lies ahead of us."

Meanwhile, the global economy in the second quarter, when the economic impact of COVID-19 became full-scale, mostly recorded historic lows. The United States, announced the day before, saw GDP decrease by 32.9% on an annualized basis, and Germany also shrank by 10.1% compared to the previous quarter. Mexico and Hong Kong recorded second-quarter GDP declines of -17.3% and -9.0%, respectively.

The European Union (EU), Spain, Italy, and others are also scheduled to announce their second-quarter GDP on the same day. Bloomberg, based on economists' forecasts, projected declines of -12.1%, -16.6%, and -15.5%, respectively.

This content was produced with the assistance of AI translation services.