After Second Lockdown , France’s Economy is Down By 12%

The central bank said that ,  France’s economic activity is 12% lower than normal this month after the country entered a coronavirus lockdown for the second time this year. On October 30th the government forced its country to re renter lockdown to rein in a surge in new cases although the restrictions were less severe than the first time to limit the impact to the euro zone’s second-biggest economy.

The Bank of France said that it had expected the economic activity  to be reduced by 12% of normal levels as a result, worse than the 4% drop in October but far better than the 31% loss seen in April during the most strict lockdown in Europe.

Bank of France Governor Francois Villeroy de Galhau said , “Before the second wave we thought we’d have a downturn of a bit less than 9%, we now expect that for the complete of 2020 we will be between -9 and -10%.”

To calculate the impact of the lockdown on the economy, the central bank drew on its monthly survey of 8,500 business leaders, which was conducted this time between Oct. 28 and Nov. 4, with 90% of responses coming after the lockdown began. Services that had to do directly with customers were expecting the hardest hit, with activity seen down 40% in the wholesale, retail, transport, hotel and restaurant industries.

For  the time being , businesses in manufacturing expected to operate at a loss of only 7% of their normal activity and construction 8%, the central bank said. But it is safe to say that the economy is holding up better than the first time.