In the first quarter of this year, France’s GDP fell by 5.8%, which was the most significant drop in the entire history of observations that have been conducted since 1949. As the French economy contracted in the fourth quarter of 2019, although by only 0.1%, this marks the beginning of a recession in the country.
This was reported on the website of the National Institute for Statistics and Economic Research of France Insee, writes Kommersant.
According to analysts, the country’s exports fell by 6.5%, while imports fell by 5.9%. The production of goods and services in France fell by 5.5%. The crisis most severely affected the construction industry due to the coronavirus pandemic – its performance dropped by 12.6% in the first quarter of this year. Industrial production in the country during this period fell by 5.8%. Consumer spending in France fell by more than 6%, and company investment fell by 11.4%.
Earlier it was reported that according to the results of 2020, the French government predicted a decline in the country’s GDP by at least 8%. The international rating agency Fitch gave a more “optimistic forecast” to reduce France’s annual GDP – to 7.2%.
According to the latest data, about 128.5 thousand cases of coronavirus infection were recorded in France, the number of pandemic victims in the country exceeded 24 thousand people.
German experts predicted a slightly smaller economic decline – 7%, while the Italian economy may have to suffer more than other developed countries – according to Fitch forecasts, its GDP may decline by more than 9% over the year. The authorities of Spain have already estimated that the country’s GDP fell by 5.2%, Belgium reported a decline of the economy by 3.9%, Austria – by 2.5%.
According to Eurostat, the GDP of the EU countries as a whole fell by 3.8%.
Earlier, the fall in world GDP by more than 3% was predicted by the International Monetary Fund, and Fitch forecasted a decrease of 3.9%.
The day before, a quarterly decline in United States GDP of 4.8% was reported on an annualized basis, and a little earlier – a decrease in China’s GDP in the first quarter by 6.8% for the first time in 28 years.