Economics
French Lockdown to Push Economy Back Into a Contraction
- Insee sees fourth-quarter GDP shrinking at least 2.5%
- French government cuts 2021 growth forecast to 6% from 8%
A pedestrian crosses the empty courtyard outside Louvre Museum during morning rush hour in Paris, France, on Nov. 2.
Photographer: Nathan Laine/BloombergThis article is for subscribers only.
France‘s second lockdown will push the economy back into a slump and slow the recovery in 2021, even though restrictions to contain the coronavirus aren’t as severe as earlier in the year.
In a best-case scenario of restrictions ending Dec. 1 and a quick return to the levels of activity seen just before the second lockdown, output would still drop 2.5%, statistics agency Insee said Tuesday. If activity remains at November’s levels through December, the contraction could be as deep as 6%.