Central bank sees 9-10 pct recession for French economy in 2020

Source: Xinhua| 2020-11-09 20:01:18|Editor: huaxia

PARIS, Nov. 9 (Xinhua) -- The governor of the Bank of France, Francois Villeroy de Galhau, on Monday estimated France's economy to contract by between 9 and 10 percent this year, worse than his previous estimate of 8.7 percent.

"Before the second wave we thought we would have a recession of a bit less than 9 percent. We now expect that for the whole of 2020 we will be between minus 9 and minus 10 percent," de Galhau told RTL radio.

"Our estimate...will of course depend on the continuation of the confinement," he added.

In order to contain a grave second wave of the epidemic, France went into a new national lockdown on Oct. 30, forcing non-essential businesses, including catering and events sectors, to shut down. Only shops selling basic items and medicines remain open.

People are ordered to stay home until at least early December. They have to sign documents if they have to go out to work, buy essential items or for a health emergency.

The governor of the central bank of France believed that the second confinement "has a significant negative effect" on the country's economic activities, which he expected to operate by 12 percent below the normal level.

The French government expected the economy to contract by 11 percent for the whole year of 2020. Enditem