French economy contracted less than predicted in Q1 – INSEE
France’s economy shrank 5.3% in the first quarter of 2020, the country’s national statistics bureau INSEE reported on Friday. The decreased was half a percentage point lower than expected.
The contraction was mainly caused by severe drop in total domestic demand, which contributed -6.0 points to gross domestic product growth. Contribution of foreign trade balance to GDP growth was zero, while changes in inventories added +0.6 points to GDP.
The statistics office previously predicted France’s GDP could end up dropping 20% in the second quarter due to the coronavirus.
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