France marks record GDP drop of 18.9% YoY in Q2
The French economy registered the largest contraction on record as the country’s gross domestic product (GDP) dipped 13.8% on a quarterly basis in the second trimester, fueled by the coronavirus crisis, the National Institute of Statistics and Economic Studies (INSEE) said in a report on Friday. On an annual basis, the GDP plummeted 18.9% in the same quarter. Final domestic demand excluding stocks sank 16.9% compared to the same period last year and 12.2% quarter-over-quarter amid the virus-caused lockdown, representing the main driving force behind the economic contraction.
The country’s imports plunged 21.2% annually and 16.4% quarterly, while exports slumped 30.5% year-over-year and 25% compared to the first three-month period of 2020.
“The negative evolution of GDP in the first half of 2020 is linked to the cessation of ‘non-essential’ activities in the context of the containment put in place between mid-March and the beginning of May. The gradual lifting of restrictions led to a gradual recovery in economic activity in May and then June, after the low point reached in April,” the institute said.
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