Last Year, French Economy Shrinks by 8.3%... Impact of COVID-19 Lockdowns

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[Asia Economy Reporter Lim Cheol-young] The French economy contracted by more than 8% last year. After experiencing negative growth in the first and second quarters, the French economy rebounded in the third quarter but recorded a negative growth rate again in the fourth quarter.

According to the French National Institute of Statistics on the 29th (local time), France's GDP growth rate for last year was -8.3%. This was better than the Banque de France's forecast of -9.0% and the government's forecast of -11.0%, but still reflected the full impact of COVID-19.

The quarterly GDP growth rate, which rebounded to positive in the third quarter, declined again in the fourth quarter. France's quarterly growth rates last year were -5.9% in the first quarter and -13.7% in the second quarter, followed by a rebound to 18.5% in the third quarter, but then fell again to -1.3% in the fourth quarter. The lockdown measures imposed in the first and fourth quarters are believed to have influenced this trend.

However, the shock from the COVID-19 lockdown appears to be somewhat easing. The GDP growth rate in the second quarter was -18.8% compared to 2019, but the fourth quarter growth rate was -5.0% year-on-year. The lifting of movement restrictions in December last year, which led to a consumption increase of over 20%, seems to have had a positive effect.

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