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Coronavirus pushed France into recession, says national bank

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France has entered into a recession as a result of measures to stem the spread of coronavirus, the country’s national bank said on Wednesday.

The French economy shrank by six  per cent in the first quarter of 2020, according to initial Banque de France estimates published on Wednesday.

GDP already shrank by 0.1 per cent in the last quarter of 2019 in the eurozone’s second largest economy, according to the nation’s statistics office.

Economists talk of a country entering into a recession when the economy shrinks for two quarters in a row.

Ahead of the outbreak of the current crisis, France’s economy had been forecast slight growth of 0.1 per cent for the first quarter of 2020.

However, in light of the pandemic, the French Government is now bracing itself for the nation’s worst recession since 1945.

French Finance Minister Bruno Le-Maire has said he expects the current crisis to exceed that of the 2009 financial crisis when the economy of the highly-indebted country shrank by 2.9 per cent, at the time of the most severe contraction since the end of World War II.

France has, for the past three weeks, imposed strict lockdown measures on its population, with many economic sectors facing severe limitations on their activities.

Edited By: Fatima Sule/Ijeoma Popoola
(NAN)

Fatima Sule: is a graduate and a professionally trained journalist, with experience in national news reporting/editing and verification at the News Agency of Nigeria. NNN is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at]nnn.com.ng