The French economy faced a contraction of 8.3% in
2020, with the coronavirus pandemic forcing countries in Europe to fall into
worst economical shape since the World War Two, AFP reported.
The drop, however, was less than the 9% fall
expected by Bank of France and INSEE, the statistics office, as well as the 11%
drop predicted by the French government, due to a boost in consumer spending during
December.
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Ahead of the holiday season in 2020, families
across the Western European nation reportedly indulged in a splurge after the second
lockdown in the country was removed, leading to spending rising back to 23% after
a 18% slump in November.
This is stated to also be the reason why the GDP,
predicted by most economists in the country to see a 4% drop, dropped only 1.3%
in the fourth quarter.
“It’s surprising, because we had six weeks of
confinement in the last quarter and three weeks of curfew” AFP quoted
Selin Ozyurt, an economist at Insurance group Euler Hermes as saying.
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The government laid down close to 300 billion Euros
for laid-off workers to sustain throughout the lockdown, alongside loans on an
emergency basis for businesses struggling because of the pandemic, a decision in line with President Emmanuel Macron’s promise to avoid bankruptcies, ‘whatever the cost’.
The stimulants, however, have not brought down the
COVID 19 counts in the country, with restaurants and eateries remaining closed
since October 30, and officials suggesting the implementation of a newer
lockdown being likely in purview of the previous nationwide six pm curfew not
being effective enough against COVID 19.