In the first quarter, economic activity faltered as much as in the spring of 1968

5/29/2020, 10:01:52 PM

GDP fell 5.3%, according to INSEE. The government hopes to ease the shock with new measures.

In the first quarter, the economy shrank by 5.3% in France, according to the latest INSEE forecasts. This is of the same magnitude as the plunge observed in the spring of 1968. It is also a little better than the initial estimate by INSEE, in April, which then predicted a drop of 5.8% of GDP. "This unusually large revision is explained by the replacement of certain estimates and extrapolations for the month of March, very affected by the containment measures, by the usual indicators", justify the statisticians.

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This correction would normally have generated countless comments. It seems, in the context of the crisis facing the country, almost anecdotal. Even though containment only started on March 17, business investment plunged 10.5% in the first three months of the year. Household consumption expenditure, for its part, recorded an "unprecedented drop" of 5.6%, due to the closings of many shops.