-
Important news
-
News
-
Shenzhen
-
China
-
World
-
Opinion
-
Sports
-
Kaleidoscope
-
Photos
-
Business
-
Markets
-
Business/Markets
-
World Economy
-
Speak Shenzhen
-
Leisure
-
Culture
-
Travel
-
Entertainment
-
Digital Paper
-
In-Depth
-
Weekend
-
Lifestyle
-
Diversions
-
Movies
-
Hotels and Food
-
Special Report
-
Yes Teens!
-
News Picks
-
Tech and Science
-
Glamour
-
Campus
-
Budding Writers
-
Fun
-
Futian Today
-
Advertorial
-
CHTF Special
-
Focus
-
Guide
-
Nanshan
-
Hit Bravo
-
People
-
Person of the week
-
Majors Forum
-
Shopping
-
Investment
-
Tech and Vogue
-
Junior Journalist Program
-
Currency Focus
-
Food and Drink
-
Restaurants
-
Yearend Review
-
QINGDAO TODAY
在线翻译:
szdaily -> World Economy -> 
French economy shrinks at fastest pace in 50 yrs
    2020-06-01  08:53    Shenzhen Daily

FRANCE’S economy contracted less than initially thought in the first quarter but it still plunged deep into recession and the worst is yet to come, official data showed Friday.

The eurozone’s second biggest-economy shrank 5.3 percent in the first three months of the year from the previous quarter, the INSEE official statistics agency said, revising its initial estimate of a 5.8 percent fall.

It was France’s deepest quarterly slump since 1968, when the country was gripped by civil unrest, mass student protests and general strikes.

The economy already shrank 0.1 percent in the fourth quarter in the face of a series of strikes against pension reform, which means France has entered a technical recession, defined as two consecutive quarters of contraction.

The government put France under one of the most strict lockdowns in Europe from mid-March, shutting down vast swaths of the economy until restrictions began to be lifted May 11.

Although economic activity is gradually coming back on line, INSEE estimated last week that the economy may contract 20 percent in the second quarter.

“While high-frequency and survey data suggest activity has picked up as the lockdown eased in May, the rebound looks gradual, and we only see a 2022 return to pre-Covid-19 output levels,” Morgan Stanley economist Jacob Nell said.

The lockdown depressed household spending, traditionally the motor of French growth, and the slump only accelerated going into the second quarter. INSEE said Friday that consumer spending had plunged a record 20.2 percent in April from March, when it had already slumped 16.9 percent.

With consumers unable to spend money in most cafes and other retail outlets during the lockdown, INSEE said households’ savings rate surged in the first quarter to 19.6 percent, a level not seen since the late 1970s.

Meanwhile, businesses corporate profit margins collapsed, tumbling to 29.4 percent, the lowest level since 2013.

(SD-Agencies)

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@szszd.com.cn