French economy shrinks by 13.8 percent in second quarter

Grim figures for eurozone's second-largest economy come a day after Germany reported a record quarterly GDP contraction.

French economy shrinks by 13.8 percent in second quarter

French GDP contracted by 13.8 percent in the second quarter of this year as a result of the coronavirus pandemic, the country’s national statistics office INSEE announced Friday morning.

The contraction, a post-war record, comes on the back of a first-quarter fall of 5.9 percent.

“The negative trend in GDP in the first half of 2020 is linked to the cessation of ‘non-essential’ activities in the context of the containment implemented between mid-March and early May,” INSEE said, adding that “the gradual lifting of restrictions leads to a gradual recovery of economic activity in May and then June, after a low point reached in April.”

Household expenditure fell by 11 percent in the second quarter, exports crashed 25.5 percent, and imports dropped 17.3 percent.

The dire figures for the eurozone’s second-largest economy were published a day after Germany reported a record quarterly GDP contraction of 10.1 percent.

Source : Politico EU