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- French economy stabilizes at 5% below pre-pandemic levels
French economy stabilizes at 5% below pre-pandemic levels
Bloomberg reports that the Bank of France said that French economic activity is running at 5% below pre-crisis levels as the government holds off from imposing a full Covid-19 lockdown beyond the current curfew and closures in some sectors.
After dipping to 7% below normal during November’s lockdown, the economy improved somewhat in December and is expected to remain steady through February, according to the central bank’s monthly survey of 8,500 companies conducted between Jan. 27 and Feb. 3.
“Confronted with a hard shock, the French economy is resisting well overall,” Bank of France Governor Francois Villeroy de Galhau said. “This resilience is both a good surprise concerning the end of 2020, and a source of reassurance for 2021.”
Villeroy confirmed the central bank’s forecast of 5% growth in 2021, which he described as “robust and rather cautious.”
Still, the situation could change quickly if the government opts for more restrictions to contain the virus. According to statistics agency Insee, such a lockdown could cause the economy to contract again in the first quarter.
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