Banque de France: France’s GDP will fall from 9% to 10% in 2020. “Before the second wave, we thought we would have a recession of just under 9%, we now think that for the whole of 2020 we will be between -9% and -10%” contraction of the GDP, declared Monday on RTL Fraçois Villeroy de Galhau, governor of the Bank of France.
Banque de France: France’s GDP will fall from 9% to 10% in 2020
France should see its economic activity reduced from 9% to 10% in 2020, said Monday on RTL François Villeroy de Galhau, the governor of the Banque de France. The central bank had predicted in September a drop in gross domestic product (GDP) of 8.7% this year, before the second wave of Covid-19.
He specified that the Banque de France was not making, at this stage, “no forecast for the entire quarter because that will actually depend on what is happening in December”.
The impact of the second confinement much lower than the first
The French central bank, which publishes its monthly economic survey of 8,000 companies on Monday, will make a more precise estimate of the decline in activity in 2020 in mid-December, “and it will of course depend on the continuation of this confinement “, explained its governor.
Mr. Villeroy was pleased that the impact of the second confinement on the entire economy is much weaker than that of the first in the spring, with a 12% drop in activity expected in November against -31% in April.
With Joe Biden, “America Should Become More Predictable”
He finally called the election of Democrat Joe Biden “good news”. “The United States should become more predictable and contribute to reducing the uncertainties which weigh very negatively” on economic activity, Mr. Villeroy de Galhau said. But “it is very important that Europe asserts itself”, he nevertheless qualified.