France Announces 141 Trillion Won Economic Stimulus Package

Investing 100 Billion Euros to Boost Green Economy and Industrial Competitiveness
Targeting Recovery to Pre-COVID-19 Levels by 2022
Stimulus This Year Approaches 25% of GDP When Combined

[Asia Economy Reporter Naju-seok] France is injecting 100 billion euros (141 trillion won) to boost the economy weakened by the novel coronavirus infection (COVID-19). Considering the previously announced stimulus measures, France has presented a stimulus package equivalent to one-quarter of its gross domestic product (GDP).

French Prime Minister Jean Castex is explaining the economic stimulus measures on the 3rd (local time). [Image source=EPA Yonhap News]

On the 3rd (local time), French Prime Minister Jean Castex announced a stimulus plan worth 4% of GDP aimed at restoring the French economy to pre-COVID-19 levels by 2022. The French economy has been facing difficulties due to the COVID-19 pandemic and lockdown policies implemented to contain it. In the second quarter of this year, France's economic growth rate recorded -13.8%, marking the worst performance since World War II. France, which heavily depends on the service and tourism sectors, is experiencing the impact of COVID-19. The International Monetary Fund (IMF) forecasted that the French economy will contract by -12.5% this year due to these factors.

The French government stated that through this stimulus package, it aims to reverse the economic downturn while enhancing industrial competitiveness. To this end, France plans to allocate 30 billion euros for the green economic transition, 35 billion euros to improve industrial competitiveness, and 35 billion euros for education and other support for unemployed youth.

Earlier, France announced a 135 billion euro stimulus package in March this year, and in June, the government decided to provide guarantees amounting to 327 billion euros for various loan extensions. With this new measure, France's total stimulus measures are expected to exceed 570 billion euros.

Meanwhile, the French government explained that 40% of the budget required for this stimulus package will be sourced from the European Union (EU) economic recovery fund.

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