Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

French economic downturn easing as lockdown lifts - central bank

Published 12/05/2020, 06:55
Updated 12/05/2020, 07:51
© Reuters. FILE PHOTO: Coronavirus disease (COVID-19) outbreak in Paris

PARIS (Reuters) - France's economic downturn is easing as the country emerges from a lockdown imposed in mid March, although activity remains mired at levels far below normal, the central bank said on Tuesday.

The euro zone's second-biggest economy was operating 27% below normal levels in April after 32% in the second half of March, the Bank of France said, basing its estimates on responses from its monthly business climate survey.

"The ambition we could have for the end of May is to recover another 10 points," Bank of France Governor Francois Villeroy de Galhau said on France Inter radio.

France began unwinding its strict lockdown on Monday, allowing non-essential shops, factories and other businesses to reopen for the first time in eight weeks.

The central bank said manufacturing activity remained down 37% last month, but was nonetheless better than the 48% seen in March, while private sector service firms' activity was reduced by 27% in April after 37% in March.

The Bank of France did not venture to make a quarterly GDP forecast it usually does when it publishes its business climate survey given the unprecedented nature of the current downturn.

© Reuters. ECB policymaker Villeroy de Galhau, who is also governor of the French central bank, attends the Paris Europlace International Financial Forum in Tokyo

However, Villeroy said that the two months of lockdown cost the economy 6% in lost activity this year so far, although the final bill would probably be higher as the recovery would be uneven.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.