The French government expects the economy to shrink by 11 percent this year, against a previously estimated drop of 8 percent, Minister of Economy and Finance Bruno Le Maire announced on Tuesday
MOSCOW (Pakistan Point News / Sputnik - 02nd June, 2020) The French government expects the economy to shrink by 11 percent this year, against a previously estimated drop of 8 percent, Minister of Economy and Finance Bruno Le Maire announced on Tuesday
"Growth in France in 2020, the recession rather - the term is more suitable - will be -11 percent," Le Maire said while speaking on the RTL broadcaster. He added that the French economy was experiencing an "extremely brutal shock," but will undoubtedly bounce back in 2021.
Last week, the INSEE statistics agency reported that the French GDP's fall would be significantly higher than the government's previous estimate of 8 percent, as the economic recovery after the start of the lockdown exit would be gradual.
The government will confirm the new recession estimate in a new draft budget, which is to be submitted to the Council of Ministers on June 10.
Meanwhile, the economy minister recalled that he had already announced support plans for the tourism and car sectors, which have been heavily disrupted by the COVID-19 crisis.� The aid strategy for the aviation industry is to be unveiled next week, and measures for the start-up and building sectors to accelerate their recovery will follow afterward, Le Maire added.
As the second phase of the lockdown exit began on Tuesday, as many as 300,000 cafes, bars and restaurants across the country started to reopen. Le Maire said that they, and other severely affected businesses, would continue to benefit from the government solidarity fund until the end of 2020.
France began easing its coronavirus-related restrictions on May 11, and the lifting continues on Tuesday with the further reopening of some facilities, non-essential stores, and public places in so-called green zones of the country that are less affected by the virus. Red, or highly infected, regions still remain under strict monitoring and related restrictions. As of Tuesday, the French authorities have confirmed 189,348 COVID-19 cases, with the death toll at 28,836.
